Dassault Aviation (ENXTPA:AM): Exploring Valuation After Strong Share Price Surge

Dassault Aviation société anonyme (ENXTPA:AM) continues its steady trajectory, catching the eye after recent share price movements. Investors are now taking a closer look at current valuation and what recent numbers reveal about the company’s momentum.

See our latest analysis for Dassault Aviation société anonyme.

Dassault Aviation société anonyme’s share price has gained impressive ground this year, jumping nearly 45% year-to-date and delivering a standout 49.6% total shareholder return over the last twelve months. Momentum has clearly been building, likely reflecting renewed confidence in the company’s growth prospects following robust results and ongoing demand for its aircraft.

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With shares surging and strong results fueling optimism, the key question for investors is whether Dassault Aviation société anonyme still trades below its true worth or if the market has already priced in future growth.

Most Popular Narrative: 12.4% Undervalued

With the last close at €283.80 and the narrative's fair value set at €324.07, this perspective implies Dassault Aviation société anonyme remains attractively valued, despite recent price rallies. Investors focused on the company’s growth runway will want to consider what drives this assessment.

The robust international demand for the Rafale, highlighted by major new contracts with India (including the first Rafale Marine export order) and the UAE, ongoing negotiations for additional aircraft with Indonesia, and active Make in India transfer initiatives, provides exceptional multi-year revenue visibility and demonstrates Dassault's ability to capitalize on the trend toward higher global defense spending, particularly among NATO and partner nations. This growing backlog should drive forward revenue growth and enhance long-term earnings stability.

Read the complete narrative.

Curious about the financial bets fueling this valuation? The narrative hinges on a potent combination: rearming nations, premium defense orders, and ambitious profit goals over the next several years. The real surprises are hidden in the details. Discover what bold forecasts set this fair value apart.

Result: Fair Value of €324.07 (UNDERVALUED)

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

However, persistent supply chain disruptions or increased trade barriers could easily threaten delivery timelines and put pressure on Dassault Aviation société anonyme's positive outlook.

Find out about the key risks to this Dassault Aviation société anonyme narrative.

Build Your Own Dassault Aviation société anonyme Narrative

Want to dig into the data or take a different approach? You can craft your own view and put it together yourself in just a few minutes, Do it your way

A great starting point for your Dassault Aviation société anonyme research is our analysis highlighting 3 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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