An Intrinsic Calculation For Publicis Groupe S.A. (EPA:PUB) Suggests It's 44% Undervalued
Nov 18
French (CAC) Media Industry Analysis
UpdatedNov 26, 2022
DataAggregated Company Financials
Companies31
- 7D2.6%
- 3M13.2%
- 1Y-8.0%
- YTD-11.2%
In the last week, the Media industry is up 2.6%, with Publicis Groupe up 2.3%. In the same time, Invibes Advertising was down 9.6%. However, the industry is down 8.0% over the past year. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the French Media Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | €40.1b | €41.0b | €2.0b | 12.2x | 19.6x | 1x |
| Tue, 25 Oct 2022 | €35.7b | €41.0b | €2.1b | 11.1x | 17.3x | 0.9x |
| Thu, 22 Sep 2022 | €34.7b | €41.0b | €2.1b | 11.4x | 16.9x | 0.8x |
| Sat, 20 Aug 2022 | €36.4b | €41.0b | €2.1b | 12.3x | 17.7x | 0.9x |
| Mon, 18 Jul 2022 | €36.2b | €38.0b | €1.2b | 11x | 29.7x | 1x |
| Wed, 15 Jun 2022 | €39.1b | €37.9b | €1.2b | 11x | 32x | 1x |
| Fri, 13 May 2022 | €41.8b | €37.9b | €1.2b | 11.5x | 34.3x | 1.1x |
| Sun, 10 Apr 2022 | €43.7b | €37.7b | €1.1b | 13.6x | 39.4x | 1.2x |
| Tue, 08 Mar 2022 | €40.4b | €44.3b | €2.5b | 12.2x | 16.3x | 0.9x |
| Thu, 03 Feb 2022 | €46.1b | €42.9b | €1.9b | 14x | 23.9x | 1.1x |
| Sat, 01 Jan 2022 | €45.1b | €42.9b | €1.9b | 13.2x | 23.4x | 1.1x |
| Mon, 29 Nov 2021 | €43.9b | €42.9b | €1.9b | 14.1x | 22.9x | 1x |
| Wed, 27 Oct 2021 | €43.6b | €42.8b | €1.9b | 13.7x | 22.8x | 1x |
| Fri, 24 Sep 2021 | €43.4b | €42.8b | €1.9b | 15.4x | 22.9x | 1x |
| Sun, 22 Aug 2021 | €30.2b | €26.0b | €720.8m | 15.7x | 41.9x | 1.2x |
| Fri, 09 Jul 2021 | €30.2b | €26.0b | €720.8m | 15x | 41.9x | 1.2x |
| Thu, 01 Apr 2021 | €29.2b | €25.5b | €392.5m | 17.9x | 74.4x | 1.1x |
| Sun, 03 Jan 2021 | €24.1b | €25.3b | €111.8m | 13.5x | 215.5x | 1x |
| Wed, 07 Oct 2020 | €18.8b | €26.8b | €680.0m | 11.9x | 27.7x | 0.7x |
| Tue, 30 Jun 2020 | €18.1b | €28.3b | €1.1b | 11.2x | 16.5x | 0.6x |
| Fri, 03 Apr 2020 | €17.4b | €29.4b | €1.6b | 10.5x | 10.7x | 0.6x |
| Mon, 06 Jan 2020 | €27.3b | €30.4b | €2.1b | 14.4x | 12.9x | 0.9x |
Price to Earnings Ratio
13.1x
Current Industry PE
- Investors are pessimistic on the French Media industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 19.6x which is lower than its 3-year average PE of 44.5x.
- The industry is trading close to its 3-year average PS ratio of 0.93x.
Past Earnings Growth
- The earnings for companies in the Media industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 12% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the French Telecom industry?
| FR Market | 0.96% | |
| Telecom | 1.88% | |
| Media | 2.57% | |
| Broadcasting | 4.10% | |
| Advertising | 2.12% | |
| Cable and Satellite | 1.33% | |
| Publishing | 0.52% | |
Industry PE
- Investors are most optimistic about the Publishing industry which is trading above its 3-year average PE ratio of 16.4x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Cable and Satellite industry, which is trading below its 3-year average of 9.1x.
Forecasted Growth
- Analysts are most optimistic on the Broadcasting industry, expecting annual earnings growth of 29% over the next 5 years.
- However this is lower than its past earnings growth rate of 83% per year.
- In contrast, the Cable and Satellite industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| PUB Publicis Groupe | €63.60 | 2.3% +€352.6m | 10.3% | PE13.9x | |
| VIV Vivendi | €8.71 | 3.1% +€257.3m | -22.1% | PS0.9x | |
| MMT Métropole Télévision | €13.40 | 10.3% +€157.8m | -22.0% | PE6.7x | |
| IPS Ipsos | €54.40 | 3.8% +€88.8m | 37.2% | PE12.2x | |
| TFI Télévision Française 1 Société anonyme | €7.09 | 5.1% +€72.6m | -15.7% | PE6.5x |
