3 Euronext Paris Stocks Estimated To Be Undervalued By Up To 42.2%

Simply Wall St · 10/17 05:07

Amidst a cautiously optimistic European market, with the CAC 40 Index showing modest gains, investors are keenly observing opportunities in France as economic policies evolve. In this context, identifying undervalued stocks becomes crucial for those looking to capitalize on potential market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name Current Price Fair Value (Est) Discount (Est)
SPIE (ENXTPA:SPIE) €35.30 €54.01 34.6%
NSE (ENXTPA:ALNSE) €29.60 €57.40 48.4%
Vivendi (ENXTPA:VIV) €10.40 €18.00 42.2%
Groupe Berkem Société anonyme (ENXTPA:ALKEM) €3.09 €5.10 39.4%
EKINOPS (ENXTPA:EKI) €4.03 €6.08 33.7%
Solutions 30 (ENXTPA:S30) €1.181 €2.33 49.3%
Vogo (ENXTPA:ALVGO) €3.24 €6.27 48.4%
Prodways Group (ENXTPA:PWG) €0.525 €0.80 34.5%
Exail Technologies (ENXTPA:EXA) €17.36 €29.49 41.1%
OVH Groupe (ENXTPA:OVH) €6.825 €12.03 43.3%

Click here to see the full list of 19 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Safran (ENXTPA:SAF)

Overview: Safran SA, along with its subsidiaries, operates in the aerospace and defense sectors globally, with a market cap of €87.65 billion.

Operations: The company generates revenue through its key segments, including Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).

Estimated Discount To Fair Value: 27.6%

Safran is trading at €208.5, significantly below its estimated fair value of €287.99, suggesting it may be undervalued based on discounted cash flow analysis. Despite a decline in profit margins and net income for the first half of 2024, Safran's earnings and revenue are forecast to grow faster than the French market average. The company expects full-year 2024 revenue around €27.4 billion, indicating potential for recovery and growth.

ENXTPA:SAF Discounted Cash Flow as at Oct 2024
ENXTPA:SAF Discounted Cash Flow as at Oct 2024

SPIE (ENXTPA:SPIE)

Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €5.89 billion.

Operations: The company's revenue segments include €1.89 billion from North-Western Europe and €684.90 million from Global Services Energy.

Estimated Discount To Fair Value: 34.6%

SPIE is trading at €35.3, which is 34.6% below its estimated fair value of €54.01, highlighting potential undervaluation based on discounted cash flow analysis. Despite a decrease in net income for the first half of 2024, SPIE's earnings are projected to grow significantly at 20% annually over the next three years, outpacing French market averages. However, high debt levels and an unstable dividend track record present challenges to consider in evaluating its financial health.

ENXTPA:SPIE Discounted Cash Flow as at Oct 2024
ENXTPA:SPIE Discounted Cash Flow as at Oct 2024

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is an entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, holding a market cap of approximately €10.48 billion.

Operations: The company's revenue segments include Canal+ Group (€6.20 billion), Havas Group (€2.92 billion), Gameloft (€304 million), Prisma Media (€303 million), Vivendi Village (€151 million), and New Initiatives (€176 million).

Estimated Discount To Fair Value: 42.2%

Vivendi is trading at €10.4, significantly below its estimated fair value of €18, suggesting potential undervaluation based on discounted cash flow analysis. Despite a slight decline in net income for the first half of 2024, Vivendi's earnings are forecast to grow substantially at 30.6% annually over the next three years, surpassing French market averages. However, its low projected return on equity and unstable dividend history may warrant caution for investors assessing long-term value.

ENXTPA:VIV Discounted Cash Flow as at Oct 2024
ENXTPA:VIV Discounted Cash Flow as at Oct 2024

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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.