Neurones (ENXTPA:NRO) Could Be 84% Undervalued On Reaffirmed 2026 Guidance

Neurones (ENXTPA:NRO) has put fresh numbers on the table. The IT services group reaffirmed its 2026 guidance while releasing half-year results that show higher sales and net income than a year earlier.

The fresh guidance has landed against a mixed trading backdrop for Neurones. The share price is at €37.1 after a 1-day share price return of 2.49% and a 7-day share price return of 1.23%, yet the year to date share price return is down 11.67% while the 1-year total shareholder return has slipped 3.98%, compared with a 3-year total shareholder return of 15.71% and a 5-year total shareholder return of 23.56%. This points to fading short term momentum but a still positive longer record that investors now have to weigh against the reaffirmed 2026 earnings framework.

Scan how Neurones compares with other IT and software plays that combine earnings visibility with recent price pressure by reviewing our curated list of 173 high quality undervalued stocks.

Neurones now trades at €37.1 while sitting at a double discount to analyst targets and intrinsic estimates. Where does fair value really land inside that gap, and how much of it reflects recent sentiment rather than fundamentals?

Price-to-Earnings of 16x: Is it justified?

On simple earnings terms, Neurones trades on a P/E of 16x, which puts the €37.1 share price in a zone that looks modestly priced against both its sector and its own earnings record.

The P/E ratio compares what you pay today per share with the profit that Neurones generates for each share over a year. For a mature IT services and software group, this measure often reflects what the market is willing to pay for earnings that are relatively steady and supported by recurring client relationships.

NRO is described as good value versus the broader European IT industry, where the average P/E sits at 18.1x. That indicates investors are paying less per euro of earnings for Neurones than for many regional peers. At the same time, the stock is described as slightly expensive compared with a closer peer group average of 15.6x, which suggests the current P/E carries a small premium to its immediate reference set.

The fair P/E estimate is 18.9x, so the current 16x multiple sits below a level the market could move towards if sentiment and fundamentals remain aligned with that fair ratio framework.

Explore the SWS fair ratio for Neurones.

Result: Price-to-Earnings of 16x (UNDERVALUED)

Still, Neurones remains exposed to softer IT spending from key sectors and to any shift in French public or regulatory policy that affects digital transformation budgets.

Find out about the key risks to this Neurones narrative.

Another View on Neurones: Cash Flows Paint an Even Cheaper Picture

The earnings multiple suggests Neurones looks modestly priced, yet the SWS DCF model goes further. It values the share at €68.1 based on estimated future cash flows, compared with the current €37.1 level. This indicates a wide undervaluation on this framework.

That gap gives investors a very different lens on risk and opportunity. If the DCF assumptions prove too generous, the margin may shrink quickly. If they hold up, it raises a sharper question: is the discount driven more by market mood than by Neurones' cash generation profile?

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 Neurones 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 173 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Sentiment around Neurones may look cautiously optimistic, yet the real test is how you interpret the numbers and risks in front of you. Act while the data is fresh and pressure test your own thesis by reviewing the 4 key rewards

Looking for more Neurones investment ideas?

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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.

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