Why RLX Technology (RLX) Is Getting Attention Today

RLX Technology (NYSE:RLX) was removed from the FTSE All-World Index (USD) on 19 September 2026, a reshuffle that can shift flows from index-tracking funds and refocus attention on the stock’s fundamentals.

At around US$1.70 per share, RLX Technology has seen its short term momentum fade, with the 30 day share price return down 7.10% and the year to date share price return down 26.72%, even though the 3 year total shareholder return is still positive at 18.02%.

The recent removal from the FTSE All World Index likely contributed to this weaker share price trend. Index tracking funds may adjust their holdings, and some investors may reassess RLX Technology in light of its longer term total shareholder return record and current fundamentals.

Compare this FTSE index removal with other tobacco and consumer stocks under pressure by screening for 32 high quality undervalued stocks that may be drawing fresh attention from investors hunting for mispriced stories.

For RLX Technology, the index exit, recent share price slide, and earlier multiyear gains pull in opposite directions. Does that mix still leave enough upside potential to justify the current risk?

Most Popular Narrative: 39% Undervalued

Against a last close near $1.70, the most followed narrative pegs RLX Technology’s fair value around $2.77. This implies a sizeable valuation gap built on specific growth and margin assumptions rather than market mood.

The ongoing global shift from traditional cigarettes to reduced-risk products, such as e-vapor and oral nicotine, is growing the overall nicotine alternatives market. RLX's leadership and early move into multi-category offerings position it to capture expanding consumer demand, supporting strong long-term revenue growth.

See why 13 investors see RLX Technology as 39% undervalued.

The fair value work behind that view uses an 8.27% discount rate and incorporates forecasts that revenue could reach CN¥9.5 billion with profit margins around 15.4%. That model also assumes RLX Technology could trade on a P/E of 20.3x on those later earnings, which is higher than the current US Tobacco sector multiple cited in the narrative, so investors need to be comfortable with a richer valuation to agree with the target.

The analyst consensus target of $2.77 sits well above the current share price, yet it still embeds execution, regulatory and competitive risks, from the dominance of illegal domestic products to tighter global e-vapor rules and heavier competition from larger tobacco groups. Anyone assessing RLX Technology after the FTSE index removal may want to test those revenue, earnings and multiple assumptions against personal expectations for regulation, market share and cash generation rather than just anchoring on the headline target.

Result: Fair Value of $2.77 (UNDERVALUED)

Still, RLX Technology faces significant challenges, including tightening e-vapor rules in China and overseas as well as illegal domestic products that could continue to put pressure on compliant operators.

Find out about the key risks to this RLX Technology narrative.

Another View: RLX Technology Through A Cash Flow Lens

The analyst fair value of about $2.77 paints RLX Technology as undervalued, yet the SWS DCF model tells a different story. On that cash flow based view, the stock around $1.70 trades above an estimated value of $1.01, which points to an overvalued outcome instead. That split forces a harder question for investors: Which set of assumptions feels more realistic for the next few years of cash generation?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out RLX Technology for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 32 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Mixed messages on RLX Technology so far. If you want to move quickly and decide where you stand, you may start by weighing its 4 key rewards and 1 important warning sign.

Looking for more ideas beyond RLX Technology?

If RLX Technology no longer feels like the only place to focus, use this moment to widen your opportunity set with fresh, data driven ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Through its subsidiaries, develops, manufactures, and sells e-vapor products in the People's Republic of China and internationally.

Excellent balance sheet and fair value.