| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.70 | 256 |
| Intrinsic value (DCF) | 4.61 | -43 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
TomTom N.V. (TMO.SW) is a global leader in navigation and location-based technology, headquartered in Amsterdam, Netherlands. Operating in the Information Technology Services sector, TomTom specializes in high-definition (HD) maps, real-time traffic data, and advanced driver assistance systems (ADAS). The company serves automotive, fleet management, logistics, and mobility industries with innovative solutions like AutoStream for automated driving and TomTom indigo for digital cockpit platforms. Despite challenges in profitability, TomTom remains a key player in the evolving smart mobility and autonomous driving ecosystem. With a market cap of approximately CHF 1.05 billion, the company continues to invest in next-gen mapping and location intelligence, positioning itself as a critical enabler for connected and autonomous vehicles.
TomTom presents a mixed investment case. While the company operates in high-growth segments like autonomous driving and location-based services, its financials show persistent challenges, including negative net income (CHF -17.3M in the latest period) and minimal operating cash flow (CHF 1.35M). The lack of dividends further limits income appeal. However, its strong cash position (CHF 55.9M) and moderate debt (CHF 43.5M) provide some stability. Investors should weigh TomTom’s technological expertise in HD mapping against intensifying competition from tech giants and its struggle to achieve consistent profitability. The stock’s beta of 1.015 suggests market-aligned volatility, making it suitable for risk-tolerant investors betting on long-term mobility trends.
TomTom competes in a rapidly evolving landscape where mapping and location services are critical for automotive and tech industries. Its primary competitive advantage lies in its specialized HD maps and real-time traffic data, which are essential for ADAS and autonomous driving systems. Unlike free consumer-facing alternatives (e.g., Google Maps), TomTom focuses on B2B partnerships with automakers, offering tailored solutions like AutoStream and RoadCheck. However, the company faces fierce competition from well-capitalized tech firms (e.g., Google, Apple) and rival mapping providers (e.g., HERE Technologies). TomTom’s smaller scale limits its R&D budget compared to giants like Google, but its automotive-grade precision and compliance with safety standards give it an edge in regulated industries. The shift to subscription-based models (e.g., TomTom indigo) could improve recurring revenue, but execution risks remain. Its ability to maintain relevance hinges on deepening OEM partnerships and expanding into emerging mobility use cases (e.g., EV routing).