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Legrand (ENXTPA:LR) Draws On Data Center Demand, Is The Valuation Still Fair?

Simply Wall St · 1d ago

Legrand (ENXTPA:LR) drew investor attention after its recent share price moved to €139.50, with performance mixed over the past month but positive over the past 3 months and year to date.

In the short term, Legrand’s 1-week and 3-month share price returns point to building momentum. Over 1-year and multi-year periods, the total shareholder returns suggest that investors who stayed invested have seen meaningfully stronger overall outcomes once dividends are included.

Scan how Legrand compares with other building infrastructure players by reviewing a hand picked 39 power grid technology and infrastructure stocks that are also catching momentum-focused investors’ attention.

Legrand looks like a solid electrical infrastructure business, yet the recent move to €139.50 raises a sharper question. Are investors now paying a fair price for that quality, or stretching on valuation?

Most Popular Narrative: 16% Undervalued

Legrand’s most followed valuation narrative pegs fair value at about €165.50, which sits well above the latest close at €139.50 and frames the recent move in a different light.

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 an above-1x book-to-bill ratio, is expected to sustain high organic revenue growth through at least 2030.

Read the complete narrative.

Want to see what sits behind that data center story? The fair value hinges on a tight mix of projected top line growth, margin resilience, and a richer future earnings multiple that pushes Legrand closer to premium peers.

Result: Fair Value of €165.50 (UNDERVALUED)

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

Still, the bullish Legrand narrative leans heavily on data center demand and on the assumption that acquisitions do not dilute margins more than expected.

Find out about the key risks to this Legrand narrative.

Another View: What Legrand’s P/E Is Telling You

The story looks different once you move away from fair value narratives for Legrand and focus purely on what the current share price implies. At €139.50, the stock trades on a P/E of 27.8x, above the 25.2x fair ratio that the market could move toward over time.

That multiple also sits higher than the wider European electrical sector at 26.2x, yet below a 34.6x peer average. This places Legrand in an awkward middle ground where valuation risk and opportunity coexist. If sentiment cools, does the P/E drift toward the fair ratio? Or if confidence builds, does it lean toward the richer peer group instead?

See what the numbers say about this price — find out in our valuation breakdown.

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

Next Steps

That mix of optimism and caution around Legrand only matters if you test it yourself and decide where you land. Move quickly from headline impressions to your own judgement by weighing the 3 key rewards and 1 important warning sign.

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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.