3 Stocks That May Be Undervalued On Euronext Paris In October 2024

As the European markets experience a modest uptick, with France's CAC 40 Index gaining 0.48% amid hopes for quicker interest rate cuts by the European Central Bank, investors are keenly observing potential opportunities on Euronext Paris. In this context, identifying undervalued stocks becomes crucial for investors aiming to capitalize on market inefficiencies and future growth prospects.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€34.74	€53.88	35.5%
Vivendi (ENXTPA:VIV)	€10.245	€17.93	42.8%
STIF Société anonyme (ENXTPA:ALSTI)	€28.30	€55.59	49.1%
Lectra (ENXTPA:LSS)	€28.00	€53.01	47.2%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.07	€5.09	39.7%
EKINOPS (ENXTPA:EKI)	€3.84	€6.65	42.2%
Solutions 30 (ENXTPA:S30)	€1.184	€2.33	49.2%
Vogo (ENXTPA:ALVGO)	€3.27	€6.27	47.9%
Exail Technologies (ENXTPA:EXA)	€17.44	€29.54	41%
OVH Groupe (ENXTPA:OVH)	€6.77	€11.98	43.5%

Click here to see the full list of 21 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Let's take a closer look at a couple of our picks from the screened companies.

OVH Groupe (ENXTPA:OVH)

Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of approximately €1.29 billion.

Operations: The company's revenue is primarily derived from Private Cloud services (€589.61 million), followed by Web Cloud & Other offerings (€185.43 million) and Public Cloud services (€169.01 million).

Estimated Discount To Fair Value: 43.5%

OVH Groupe is trading at €6.77, significantly below its estimated fair value of €11.98, making it undervalued based on discounted cash flow analysis by over 20%. Despite a highly volatile share price recently, the company is expected to see revenue growth of 9.7% annually, outpacing the French market's 5.6%. While its return on equity forecast remains low, OVH is anticipated to achieve profitability within three years with strong earnings growth prospects.

• Our growth report here indicates OVH Groupe may be poised for an improving outlook.
• Get an in-depth perspective on OVH Groupe's balance sheet by reading our health report here.

Safran (ENXTPA:SAF)

Overview: Safran SA, along with its subsidiaries, operates in the aerospace and defense sectors globally and has a market cap of €87.78 billion.

Operations: The company's revenue is primarily derived from Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).

Estimated Discount To Fair Value: 27.5%

Safran is trading at €208.8, below its estimated fair value of €287.82, suggesting it is undervalued by over 20% based on discounted cash flow analysis. The company forecasts earnings growth of 19.5% annually, surpassing the French market's 12.1%. However, recent results show a significant drop in net income to €57 million from €1.86 billion year-over-year, highlighting potential profitability concerns despite robust revenue growth expectations for the full year (€27.4 billion).

• Upon reviewing our latest growth report, Safran's projected financial performance appears quite optimistic.
• Click to explore a detailed breakdown of our findings in Safran's balance sheet health report.

SPIE (ENXTPA:SPIE)

Overview: SPIE SA is a company that offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €5.80 billion.

Operations: The company's revenue segments include North-Western Europe with €1.89 billion and Global Services Energy with €684.90 million.

Estimated Discount To Fair Value: 35.5%

SPIE is trading at €34.74, significantly below its estimated fair value of €53.88, indicating it may be undervalued by over 20% based on discounted cash flow analysis. The company's earnings are forecast to grow at 20% annually, outpacing the French market's average growth rate. Despite a high debt level and recent declines in net income (€56.75 million from €73.17 million), SPIE's revenue growth (6.6%) remains above the market average (5.6%).

• The growth report we've compiled suggests that SPIE's future prospects could be on the up.
• Delve into the full analysis health report here for a deeper understanding of SPIE.

Turning Ideas Into Actions

• Gain an insight into the universe of 21 Undervalued Euronext Paris Stocks Based On Cash Flows by clicking here.
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Ready For A Different Approach?

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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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