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CVC: Index Inclusion Will Drive Future Upside Despite Slightly Softer Margins

Stronger Fee Reliability And Execution Will Offset Earnings Margin Pressures Ahead

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CVC
AnalystConsensusTarget
Not Invested
Published 27 Apr 2025

Update shared on 19 Dec 2025

Fair value Decreased 1.83%
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AnalystConsensusTarget's Fair Value
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1Y
-32.1%
7D
0.4%

Analysts have slightly lowered their price target on CVC Capital Partners by approximately €0.35 per share. This reflects a modestly higher discount rate and marginally softer long term profit margin assumptions that more than offset a small upgrade to revenue growth expectations.

What's in the News

  • CVC Capital Partners has been added to the Amsterdam AEX Index, increasing its visibility among European blue-chip investors (Index announcement).
  • CVC has exited bidding for Australian non-bank lender La Trobe Financial amid regulatory uncertainty and reduced auction competitiveness, leaving rival Warburg Pincus as the primary remaining bidder (The Australian).
  • CVC is among several global private equity suitors, alongside EQT, PAG and Blackstone, evaluating a potential $1 billion acquisition of a controlling stake in Indian software services firm ValueLabs, with due diligence under way and first-round bids expected by the end of November (The Economic Times).

Valuation Changes

  • Fair Value: reduced slightly from €19.28 to €18.93 per share, reflecting a modest downward revision in the base case valuation.
  • Discount Rate: adjusted marginally higher from roughly 7.44 percent to 7.51 percent, implying a slightly more conservative risk assessment.
  • Revenue Growth: nudged up modestly from about 9.10 percent to 9.15 percent, indicating a small improvement in long term top line expectations.
  • Net Profit Margin: trimmed slightly from approximately 53.19 percent to 52.95 percent, reflecting somewhat lower long term profitability assumptions.
  • Future P/E: eased modestly from about 20.82x to 20.47x, consistent with the small downgrade in fair value despite stronger revenue growth assumptions.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.