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Is Legrand (ENXTPA:LR) Undervalued After Its Latest Half Year Earnings?

Simply Wall St · 3d ago

Recent Earnings Spark Fresh Interest In Legrand Stock

Legrand (ENXTPA:LR) drew fresh attention after reporting half year 2026 earnings, with sales of €5,400.3m and net income of €698.2m compared with the same period a year earlier.

See our latest analysis for Legrand.

Legrand’s latest earnings update has come alongside a 1-year total shareholder return of 9.0% and a 3-year total shareholder return of 59.7%, although the 90-day share price return is down 13.71%. This points to fading short term momentum after a period of stronger longer term performance.

If you are weighing Legrand’s recent move and want to see what else is moving in related areas of the market, it could be worth scanning 36 power grid technology and infrastructure stocks

Legrand’s earnings story and the recent 90 day pullback now sit side by side. The key decision is whether that combination already offers a fair entry, or whether patience could secure a more attractive price.

Most Popular Narrative: 14.2% Undervalued

Legrand’s most followed valuation narrative puts fair value at €161.11, above the last close at €138.15. That gap is built on a specific growth and margin story.

Surging investment in data centers, driven by the growth of artificial intelligence and the increasing digitalization of infrastructure globally, is fueling exceptionally strong demand for Legrand's white space products. This trend, supported by a large backlog and above-1x book-to-bill ratio, is expected to sustain high organic revenue growth through at least 2030.

Read the complete narrative.

Curious what sits behind that projected growth runway? The narrative leans on a specific revenue path, a firmer margin profile, and a higher future earnings multiple.

Result: Fair Value of €161.11 (UNDERVALUED)

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

However, this Legrand narrative still leans heavily on data center demand and smooth integration of recent acquisitions, so any setback in either area could quickly challenge it.

Find out about the key risks to this Legrand narrative.

Another View On Legrand’s Valuation

The analyst narrative sees Legrand as 14.2% undervalued at €161.11, yet the current P/E of 27.5x paints a tighter picture. It sits above the European Electrical industry on 25.7x and above a fair ratio of 25.3x, which suggests less margin for error if earnings disappoint.

For a closer look at how that P/E premium compares and how the fair ratio could become an anchor over time, See what the numbers say about this price — find out in our valuation breakdown.

ENXTPA:LR P/E Ratio as at Aug 2026
ENXTPA:LR P/E Ratio as at Aug 2026

Next Steps

Finding this Legrand story balanced between opportunity and risk? Act quickly, review the key data for yourself, then weigh up the 3 key rewards and 1 important warning sign.

Looking For More Investment Ideas Beyond Legrand?

If Legrand’s story has you thinking more broadly about your portfolio, do not stop here. The next step is to compare it with other focused 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.