Renault (ENXTPA:RNO) Valuation: Assessing the Stock After Q3 Revenue Growth and Hybrid Innovation Unveiled

Renault (ENXTPA:RNO) has caught the market’s attention after announcing higher revenues for the third quarter and first nine months of 2025, signaling ongoing positive momentum. The update was also supported by innovation from Horse Powertrain.

See our latest analysis for Renault.

Renault’s recent sales uptick and new hybrid tech have sparked plenty of interest, yet the share price has not reflected that enthusiasm so far. After a steady climb mid-year, the stock has pulled back to €33.86, contributing to a year-to-date share price return of -28.05%. Still, shareholders can take some comfort in a robust 5-year total return of 62.33%, which shows that long-term momentum remains intact despite the latest dip.

If Renault’s developments have you looking at the auto sector with fresh eyes, this is a great time to discover See the full list for free.

With revenues ticking higher and innovation in focus, the big question for investors now is whether Renault’s recent dip leaves the stock undervalued, or if the market has already factored future growth into today’s price.

Most Popular Narrative: 30.6% Undervalued

Based on the most widely followed narrative, Renault’s last closing price of €33.86 sits well below an implied fair value. This suggests the recent market downturn may be overdone. This narrative’s fair value calculation stands at €49, highlighting a potential opportunity that has yet to be fully recognized by investors.

“I stick to my original take that, particularly at these extremely oversold levels, Renault is a promising investment in the auto sector. This whole analysis, mind you, can only hold true if additional tariffs can be avoided or the existing ones even be lowered; otherwise, all assumptions made here are subject to brutal downward revisions.”

Read the complete narrative.

Want to know why this narrative projects a value so much higher than what the market currently believes? The calculation hinges on bold profit margin recovery and a future earnings multiple rarely seen in legacy automakers. Craving the full story and the unusual mix of figures behind this estimate? Dive in to see what sets this thesis apart.

Result: Fair Value of $49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering worries about tariffs and Renault’s debt load could quickly shift sentiment and challenge the optimistic outlook that is highlighted in the current narrative.

Find out about the key risks to this Renault narrative.

Build Your Own Renault Narrative

If you see things differently or want to dig deeper into the details yourself, you can craft your own take in just a few minutes. Do it your way.

A great starting point for your Renault research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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