Legrand (ENXTPA:LR): Assessing Valuation Following Strong Share Price Momentum and Growth Projections

Legrand (ENXTPA:LR) shares have experienced some shifts recently, catching the attention of those tracking the industrials sector in France. Investors seem to be weighing the company’s latest performance in relation to its ongoing growth trajectory.

See our latest analysis for Legrand.

Legrand’s share price has picked up impressive momentum this year, rallying over 51% year-to-date and notching a strong 25% gain in the past three months. Looking longer term, shareholders have seen a total return of more than 125% over five years. This reflects consistent growth and renewed optimism about the company’s future prospects.

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With such stellar gains already achieved, investors might be wondering if Legrand’s current valuation offers more room to run or if all that future growth is already reflected in today's share price.

Most Popular Narrative: 6% Overvalued

Legrand's current share price is ahead of the most widely followed narrative’s fair value estimate. This suggests that recent momentum may have surpassed underlying assumptions.

Surging investment in data centers, driven by the growth of artificial intelligence and the increasing digitalization of infrastructure globally, is fueling exceptionally strong demand for Legrand's white space products. This trend, supported by a large backlog and an above-1x book-to-bill ratio, is expected to sustain high organic revenue growth through at least 2030.

Read the complete narrative.

What hidden financial drivers are supercharging these projections? The narrative is built on bold estimates for future expansion, rising margins, and ambitious earnings targets. Find out which surprising figures shape this premium valuation and why they challenge conventional industry benchmarks.

Result: Fair Value of $133.99 (OVERVALUED)

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

However, a potential slowdown in data center spending or ongoing pressure in core building markets could quickly challenge even the most optimistic forecasts.

Find out about the key risks to this Legrand narrative.

Build Your Own Legrand Narrative

If you see things differently or want to dive deeper into Legrand’s numbers yourself, you can build your own perspective quickly and easily, often in just a few minutes. Do it your way

A great starting point for your Legrand 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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