Orange Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 FTE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FTE (€9.51) is trading below our estimate of fair value (€26.69)

Significantly Below Fair Value: FTE is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FTE. This is calculated by dividing FTE's market cap by their current earnings.
What is FTE's PE Ratio?
PE Ratio12.4x
Earnings€2.04b
Market Cap€25.29b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FTE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
O2D Telefónica Deutschland Holding
22.9x-11.4%€6.2b
DTE Deutsche Telekom
24.2x15.7%€144.7b
762 China Unicom (Hong Kong)
10.1x5.2%HK$218.2b
SCMN Swisscom
15.5x-0.08%CHF 26.1b
FTE Orange
12.4x13.1%€25.3b

Price-To-Earnings vs Peers: FTE is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (18.1x).


Price to Earnings Ratio vs Industry

How does FTE's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FTE 12.4xIndustry Avg. 17.3xNo. of Companies8PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FTE is good value based on its Price-To-Earnings Ratio (12.4x) compared to the European Telecom industry average (17.6x).


Price to Earnings Ratio vs Fair Ratio

What is FTE'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.

FTE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: FTE is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.6x).


Analyst Price Targets

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

The above table shows the analyst FTE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€9.51
€13.01
+36.8%
13.6%€15.50€8.00n/a20
Dec ’25€10.06
€13.07
+29.9%
13.6%€15.50€8.00n/a20
Nov ’25€10.06
€13.07
+29.9%
13.5%€15.50€8.00n/a20
Oct ’25€10.33
€12.91
+25.0%
12.7%€15.50€8.00n/a21
Sep ’25€10.31
€12.96
+25.8%
13.2%€16.00€8.00n/a21
Aug ’25€10.31
€12.96
+25.8%
13.2%€16.00€8.00n/a21
Jul ’25€9.42
€13.05
+38.4%
12.9%€16.00€8.00n/a20
Jun ’25€10.75
€13.13
+22.1%
12.3%€15.50€8.00n/a20
May ’25€10.37
€13.18
+27.2%
12.7%€15.50€8.00n/a19
Apr ’25€10.87
€13.09
+20.4%
12.6%€15.50€8.00n/a18
Mar ’25€10.57
€13.06
+23.5%
12.6%€15.50€8.00n/a18
Feb ’25€10.94
€12.96
+18.4%
12.7%€15.50€8.00n/a18
Jan ’25€10.28
€12.80
+24.5%
12.7%€15.50€8.00n/a20
Dec ’24€11.40
€12.75
+11.9%
12.6%€15.50€8.00€10.0620
Nov ’24€11.19
€12.74
+13.8%
12.7%€15.50€8.00€10.0620
Oct ’24€10.86
€12.62
+16.2%
15.2%€16.00€8.00€10.3320
Sep ’24€10.43
€12.70
+21.7%
15.7%€16.00€8.00€10.3118
Aug ’24€10.23
€12.70
+24.2%
15.7%€16.00€8.00€10.3118
Jul ’24€10.70
€12.69
+18.5%
15.2%€15.50€8.00€9.4218
Jun ’24€11.18
€12.62
+12.9%
15.1%€15.50€8.00€10.7519
May ’24€11.82
€12.45
+5.4%
15.5%€15.50€8.00€10.3719
Apr ’24€10.95
€12.10
+10.5%
16.9%€15.50€8.00€10.8719
Mar ’24€10.74
€12.12
+12.8%
16.2%€15.50€8.00€10.5720
Feb ’24€9.72
€12.12
+24.7%
17.3%€16.00€8.00€10.9421
Jan ’24€9.35
€12.18
+30.3%
16.9%€16.00€8.00€10.2821
Dec ’23€9.81
€12.15
+23.8%
16.6%€16.00€8.00€11.4021

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 12:03
End of Day Share Price 2024/12/18 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Orange S.A. is covered by 56 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jean-Michel SalvadorAlphaValue
Pierre-Marie D'OrnanoArete Research Services LLP
Andrew Charles BealeArete Research Services LLP