A Look at Alstom (ENXTPA:ALO) Valuation Following CEO Transition Announcement

Alstom (ENXTPA:ALO) has named Martin Sion as its next CEO, with the transition scheduled for April 2026. The decision follows a period of careful succession planning and signals stability at the company’s top levels.

See our latest analysis for Alstom.

Alstom’s share price has been relatively steady this year, with a recent uptick as attention turned to its leadership changes and strategic direction. The 1-year total shareholder return of nearly 7% hints at improving investor sentiment. In the bigger picture, momentum is recovering after a tough five-year period, which could set the stage for renewed interest if growth prospects begin to strengthen.

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With shares hovering slightly below analyst price targets and a muted value score, the key question is whether Alstom is trading at a discount that anticipates future gains, or if markets are already reflecting upcoming growth in the price.

Most Popular Narrative: 5.3% Undervalued

With Alstom’s narrative-based fair value set above the latest closing price, the most popular outlook points toward the market undervaluing its turnaround potential. This valuation forms the basis for a bullish case on Alstom’s future margin and order quality.

The company is conducting industrial restructuring to optimize its manufacturing setup, which aims to enhance operational efficiency and potentially improve net margins and earnings. Significant future opportunities lie in Alstom's strong order pipeline, especially in Europe, the Middle East, and Asia Pacific, with €200 billion expected in orders over the next three years. This could enhance revenue.

Read the complete narrative.

Want to know what’s driving this optimism? The numbers behind this valuation rest on an aggressive blueprint for future earnings, expanding profitability, and major wins from global contract flows. Which specific assumptions tip the scales in this narrative calculation? The surprise is found within the financial projections—click through to uncover what’s fueling the bullish outlook on Alstom now.

Result: Fair Value of $23.06 (UNDERVALUED)

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

However, persistent supply chain challenges and delays in legacy contracts could hinder Alstom’s earnings recovery and dampen the current bullish outlook.

Find out about the key risks to this Alstom narrative.

Another View: Multiples Tell a Different Story

Looking from the lens of price-to-earnings ratios, Alstom appears expensive. Its ratio stands at 71x, much higher than both the European Machinery industry average of 19.9x and the peer average of 17.3x, as well as its own fair ratio of 39x. This gap raises questions about valuation risk. Could the market be too optimistic?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Alstom Narrative

If you’d rather follow your own thesis, you can quickly dive into the numbers and shape a custom view on Alstom’s future in just a few minutes, Do it your way.

A great starting point for your Alstom research is our analysis highlighting 2 key rewards and 1 important warning sign 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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