Airbus (ENXTPA:AIR): Valuation Spotlight as Fuel Cell Innovation Reaches Major Milestone

If you have Airbus (ENXTPA:AIR) in your sights, recent news from its partnership with Advent Technologies just turned up the heat, literally. The duo reached a major milestone in developing next-generation High-Temperature Proton Exchange Membrane (HT-PEM) fuel cell technology, boosting both power density and efficiency for high-performance aviation applications. It is another sign that Airbus is pushing forward with clean energy solutions that could eventually transform not only its fleet, but also sectors like defense and heavy-duty mobility.

This collaboration breakthrough comes at a time when Airbus’s stock is already showing strong momentum. Over the past year, shares have climbed 52%, with close to 20% gains since the start of the year and an impressive 19% increase in the past 3 months. These moves suggest the market is keeping a close eye on Airbus’s innovation pipeline, and it is not just patent filings. Investors appear to be rewarding tangible advances. Last year’s double-digit revenue and net income growth further paint a picture of a company benefiting from broad industry tailwinds and operational progress.

With this much innovation in play and shares at multi-year highs, the question becomes clear: is Airbus still undervalued after this rally, or are buyers paying up for tomorrow’s growth today?

Most Popular Narrative: 2.7% Undervalued

According to the most widely followed narrative, Airbus is seen as slightly undervalued, with its current share price sitting just below the consensus analyst target. The focus is on robust drivers of demand, and the company’s strong financial outlook has many watchers wondering what could fuel the next leg up.

Rising global demand, sustainability focus, and airline fleet modernization drive strong aircraft sales, margin expansion, and long-term backlog growth. Diversified growth in defense, space, and aftermarket services enhances earnings potential and operational efficiency through ongoing strategic investments.

Curious what assumptions power this bullish view? Momentum is high, but the expected boom in earnings and margins may surprise you. Do you want to know how future industry shifts and Airbus's own aggressive growth bets could play out in key financial metrics? The full breakdown reveals which projections shape the target, as well as the gaps no one is talking about yet.

Result: Fair Value of €197.11 (UNDERVALUED)

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

However, persistent supply chain snags and integration obstacles for key suppliers still loom. These challenges threaten Airbus’s ability to meet delivery targets and sustain growth.

Find out about the key risks to this Airbus narrative.

Another View: SWS DCF Model Suggests Even Greater Discount

While analysts see Airbus as only slightly undervalued based on market expectations, our SWS DCF model tells a different story and highlights a much deeper discount. Could this gap mean the market is missing something?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Airbus for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Airbus Narrative

If the consensus does not match your perspective or you would rather chart your own course, all the tools are available to let you build a custom outlook in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Airbus.

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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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