Update shared on 14 Dec 2025
Fair value Increased 7.81%Analysts have modestly raised their price target on Veolia Environnement, reflecting a move in fair value from approximately €25.96 to €27.99. They cite expectations of slightly stronger profit margins and a higher future earnings multiple, despite a more conservative revenue growth outlook and updated discount rate assumptions.
What's in the News
- Veolia unveiled a high efficiency cogeneration district heating plant in Poznan that now supplies heat to 60% of the city, boosts efficiency to 92% and cuts CO2 emissions by 25%, supporting a coal free heating network by 2030 (Product Related Announcements).
- The company launched its Ecothermal Grid offer to decarbonize small urban heating and cooling networks by combining renewables, waste heat recovery, heat pumps, electric boilers and AI driven digital tools (Product Related Announcements).
- Veolia confirmed 2025 guidance, targeting around 9% growth in current net income group share before Suez PPA at constant forex, supported by solid organic revenue growth (Corporate Guidance).
- New long term water contracts and extensions in Australia, Chile and the United States, including major desalination and wastewater O&M deals and deployment of the Hubgrade digital platform, strengthen Veolia’s global water operations footprint (Client Announcements, Business Expansions).
- A memorandum of understanding with TotalEnergies deepens collaboration on energy transition and circular economy, covering methane emissions monitoring at landfills, industrial water reuse and low carbon energy for desalination plants (Client Announcements, Strategic Alliances).
Valuation Changes
- Fair Value has risen moderately from approximately €25.96 to about €27.99, reflecting a higher assessed intrinsic value for the shares.
- Discount Rate has increased slightly from 5.98% to around 6.34%, implying a marginally higher required return and risk premium in the valuation model.
- Revenue Growth assumptions have been trimmed modestly from about 3.55% to roughly 3.07% per year, signaling a more cautious top line outlook.
- Net Profit Margin expectations have improved slightly from around 3.46% to approximately 3.59%, pointing to anticipated efficiency and profitability gains.
- Future P/E multiple has risen moderately from about 13.0x to roughly 14.0x, indicating a somewhat higher valuation placed on expected earnings.
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