Safran (ENXTPA:SAF) Valuation Check After Strong Year-to-Date Share Price Gains

Safran (ENXTPA:SAF) has quietly added to its strong run this year, with the stock edging higher over the past week and sitting on roughly 43% gains year to date.

See our latest analysis for Safran.

That latest move takes Safran’s share price to about €306.3, capping a strong year in which the share price return and longer term total shareholder returns suggest momentum is still building rather than fading.

If Safran’s run has you rethinking your aerospace exposure, this could be a good moment to scan other aerospace and defense stocks that might fit a similar thesis.

With Safran now trading near record highs and only a modest discount to analyst targets, the key question is whether investors are underestimating its earnings power or whether the market is already pricing in future growth.

Most Popular Narrative Narrative: 6.8% Undervalued

Safran’s most followed narrative points to a fair value of €328.67 against the last close of €306.3, framing upside as a function of durable earnings power rather than short term swings.

Record free cash flow generation and improved operating margins (17% in H1, with full year propulsion margin expansion targeted at 250 bps) indicate operational efficiency improvements and scalability, pointing toward robust earnings and cash flow growth as these long term demand and technology trends play out.

Read the complete narrative.

Curious how steady double digit top line growth, stickier margins and a richer future earnings multiple combine into that upside case? The full narrative lays out the exact profit path, step by step, that underpins this valuation.

Result: Fair Value of €328.67 (UNDERVALUED)

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

However, persistent supply chain bottlenecks and integration risks from recent acquisitions could pressure margins and delay the earnings trajectory that underpins that upside case.

Find out about the key risks to this Safran narrative.

Another Angle on Valuation

Our take using a single earnings multiple is more cautious. Safran trades at 29.6 times earnings versus a fair ratio of 27.4 times, hinting at some valuation risk, yet it still looks cheaper than peers at 34.9 times. Is the market paying a premium, or is it just catching up to quality?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Safran Narrative

If you see the story differently or want to test your own assumptions against the numbers, build a custom view in minutes, Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Safran.

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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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