Is Dassault Aviation (ENXTPA:AM) Still Undervalued After a 43% Share Price Surge?

Dassault Aviation société anonyme (ENXTPA:AM) has drawn some attention lately, particularly as investors assess its recent market performance and strong track record. Shares are up 43% year to date, fueling renewed interest in the aerospace group.

See our latest analysis for Dassault Aviation société anonyme.

The share price momentum for Dassault Aviation société anonyme is hard to ignore, with a robust 43% return year to date as investors respond to the company’s growth outlook and sizeable contract wins. Over the longer term, momentum is clearly building. A one-year total shareholder return of 52% underscores sustained investor confidence as the stock pushes to new highs.

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But with shares trading near record highs and robust earnings growth already in the books, the key question emerges: Is Dassault Aviation société anonyme still undervalued, or has the market already priced in all its future gains?

Most Popular Narrative: 13.4% Undervalued

With Dassault Aviation société anonyme trading at €280.8 and the narrative consensus fair value at €324.07, there is a notable gap to the upside. These numbers suggest the market may not be fully reflecting the projected growth and industry dynamics in its current pricing.

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.

Want to know what powers this bullish outlook? Analysts are relying on aggressive forecasts for revenue expansion, profit margins, and future earnings strength. The model leans on strong defense drivers, but what hidden assumptions actually unlock such a high fair value? Click to uncover the reasoning behind the number that has caught investors' attention.

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 faltering civil jet demand could quickly challenge these bullish assumptions. This could put long-term revenue stability at risk.

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

Build Your Own Dassault Aviation société anonyme Narrative

Keep in mind, if you see things differently or want to investigate your own angles, it’s easy to build your own narrative around the same data 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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