Compagnie Générale des Établissements Michelin Société en commandite par actions

DB:MCH1 Stock Report

Market Cap: €21.8b

Compagnie Générale des Établissements Michelin Société en commandite par actions Valuation

Is MCH1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCH1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCH1 (€15.2) is trading below our estimate of fair value (€18.42)

Significantly Below Fair Value: MCH1 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCH1?

Key metric: As MCH1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCH1. This is calculated by dividing MCH1's market cap by their current earnings.
What is MCH1's PE Ratio?
PE Ratio11.4x
Earnings€1.92b
Market Cap€21.81b

Price to Earnings Ratio vs Peers

How does MCH1's PE Ratio compare to its peers?

The above table shows the PE ratio for MCH1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
CON Continental
12.4x23.4%€12.4b
HLE HELLA GmbH KGaA
29.2x17.1%€9.6b
VOW3 Volkswagen
3.3x9.6%€41.2b
BMW Bayerische Motoren Werke
5.3x3.9%€42.9b
MCH1 Compagnie Générale des Établissements Michelin Société en commandite par actions
11.4x11.5%€21.8b

Price-To-Earnings vs Peers: MCH1 is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does MCH1's PE Ratio compare vs other companies in the European Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MCH1 11.4xIndustry Avg. 8.9xNo. of Companies9PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCH1 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the European Auto Components industry average (9x).

Price to Earnings Ratio vs Fair Ratio

What is MCH1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCH1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio8.2x

Price-To-Earnings vs Fair Ratio: MCH1 is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (8.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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