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Sanofi (ENXTPA:SAN): Assessing Valuation After a Modest Short-Term Share Price Pullback

Simply Wall St · 1d ago

Short term performance and recent slide

Sanofi (ENXTPA:SAN) has drifted lower recently, with the share price down around 1 % over the past week and about 2 % over the past month, even as the past 3 months remain positive.

See our latest analysis for Sanofi.

Despite the recent dip, Sanofi’s 6.38% 3 month share price return contrasts with a weaker year to date trend and a modest 1 year total shareholder return decline. This suggests sentiment is still recalibrating around growth prospects and perceived pipeline risks.

If Sanofi’s recent moves have you rethinking healthcare exposure, this could be a good moment to explore other quality names across healthcare stocks and compare how they stack up.

With earnings still growing, a sizeable discount to analyst targets, and long term returns intact, is Sanofi quietly slipping into value territory? Or is the market simply discounting the risks and future growth already ahead of time?

Most Popular Narrative Narrative: 20.4% Undervalued

With Sanofi last closing at €84.57 against a narrative fair value of about €106.26, the valuation case leans firmly toward a patient re rating story.

Analysts are assuming Sanofi's revenue will grow by 4.2% annually over the next 3 years.

Analysts assume that profit margins will increase from 14.0% today to 18.5% in 3 years time.

Read the complete narrative.

Curious how steady mid single digit growth and a step up in profitability can still justify a big valuation gap? The narrative leans on disciplined margin expansion, rising earnings power, and a future earnings multiple that looks more like a quality compounder than a slow moving incumbent. Want to see exactly how those moving parts stack up to reach that fair value?

Result: Fair Value of €106.26 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pricing pressure and any setback in late stage pipeline approvals could quickly erode the perceived discount and reset expectations.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

If you would rather examine the numbers yourself and challenge this view, you can shape a custom Sanofi story in minutes, Do it your way.

A good starting point is our analysis highlighting 6 key rewards investors are optimistic about regarding Sanofi.

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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.