Pony AI Faces Index Shake-Up as Valuation Views Diverge

Pony AI was dropped from the Nasdaq Transportation Index after its Hong Kong-listed shares joined the FTSE All-World Index. Its Nasdaq listing was also removed, according to Simply Wall St.

The index changes have drawn attention to the company’s place in global equity benchmarks. Simply Wall St said they could affect index-tracking flows, liquidity and how different investor groups gain exposure, but did not quantify any impact.

Pony AI last closed at $6.54. Simply Wall St reported that its share price return was down 59.3% year to date, while its one-year total shareholder return had fallen 71.6%.

Valuation estimates point in different directions. A narrative highlighted by Simply Wall St puts fair value at $10, or 35% above the last close. The publication’s discounted cash flow model estimates fair value at $18.52.

The same analysis noted that Pony AI’s price-to-sales ratio was 22.7 times, compared with 3.7 times for the US software industry and a 5.1-times peer average. It said the company’s expansion plans could lift ride volumes and fare revenue, while the cost of scaling fleets and operations could outpace demand growth.