Dassault Aviation (ENXTPA:AM) Valuation: Assessing Growth Potential Following Rafale Fighter Jet Agreement with Ukraine and France

Dassault Aviation société anonyme (ENXTPA:AM) has acknowledged Ukrainian and French authorities after they signed a declaration of intent regarding the acquisition of the Rafale fighter jet. This development highlights growing international cooperation in the defense sector.

See our latest analysis for Dassault Aviation société anonyme.

The announcement comes following steady momentum in Dassault Aviation société anonyme’s share price, which has surged 46.4% year-to-date and delivered an impressive 51.84% total shareholder return over the past year. Recent events and the Rafale interest appear to be fueling optimism about the company's growth prospects and long-term value.

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With the share price soaring and pivotal deals making headlines, investors are now left to wonder if Dassault Aviation is still undervalued with future growth ahead, or if the market has already priced in the upside.

Most Popular Narrative: 11.5% Undervalued

With Dassault Aviation’s fair value estimated at €324.07 compared to a last close price of €286.8, the prevailing narrative suggests further upside potential and the price may not reflect the full growth story yet. Let’s see what’s powering this optimism from the most-followed perspective.

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 what really drives this bullish valuation? There is a key blend of defense mega-contracts and forward-looking earnings projections at play. The specifics behind this narrative are more aggressive than you might expect. Discover the quantitative leaps that underlie the fair value calculation.

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 delayed international collaborations could undermine Dassault Aviation’s strong outlook and restrict the anticipated growth trajectory.

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

Build Your Own Dassault Aviation société anonyme Narrative

If you want to dive deeper into the numbers or draw your own conclusions, you can easily craft a personal narrative 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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