Elis (ENXTPA:ELIS): Assessing Valuation Following This Week’s Share Price Dip

Elis (ENXTPA:ELIS) shares have slipped slightly this week, catching some investors’ attention due to recent price movement. With the stock’s recent pullback, some are now weighing up valuation opportunities in relation to its performance over the past month.

See our latest analysis for Elis.

While Elis shares have eased back this week, their momentum over the past year is hard to overlook. The share price is up nearly 28% year-to-date and there is a robust 27.5% total shareholder return for the year. This latest blip follows a strong multi-year run and points to investors reassessing value and growth potential as recent gains cool slightly.

If this shift in Elis’ trajectory has you curious about other opportunities, now is the perfect moment to widen your view and discover fast growing stocks with high insider ownership

Given Elis’ moderate valuation discount and robust long-term performance, the key question for investors is whether today’s dip unlocks hidden value, or if strong fundamentals are already reflected in the stock price.

Most Popular Narrative: 12.2% Undervalued

Elis’s last close of €24.16 sits notably below the fair value outlined in the most followed narrative, suggesting a meaningful valuation gap. The narrative brings together aggressive growth, sector momentum, and recurring revenues as core pillars driving this view.

Persistent outsourcing momentum across healthcare, workwear, and cleanroom segments, supported by stricter hygiene requirements and regulations, continues to drive new contract wins and organic revenue growth. This aligns Elis with high-visibility, recurring revenue streams. Rising client and regulatory focus on sustainability and the circular economy is enabling Elis to leverage its expertise in closed-loop textile management and demonstrable decarbonisation initiatives. Improved ESG scores and tangible client engagement are also evident, which should support pricing power and margin expansion.

Read the complete narrative.

Want the real story behind this price target? This narrative stakes its fair value on forecast improvements in margin and substantial revenue growth. There is a bold projection about future earnings expansion that could surprise you. Dive in to see how the narrative calculates upside from these quantitative drivers.

Result: Fair Value of €27.53 (UNDERVALUED)

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

However, significant margin pressure in Latin America or unexpected weakness in the hospitality sector could quickly challenge this optimistic outlook for Elis.

Find out about the key risks to this Elis narrative.

Another View: Multiples Tell a Different Story

Looking through a different lens, Elis is trading on a price-to-earnings ratio of 15.1x. This is higher than the European Commercial Services industry average of 13.7x and above the estimated fair ratio of 14.6x. While it is cheaper than the peer group average at 17.9x, the premium over the industry and fair ratio could signal limited upside or valuation risk if growth expectations are not met. So which view is truer to Elis’s future?

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

Build Your Own Elis Narrative

Whether you have a different take or prefer hands-on analysis, you can dig into the numbers and shape your own story about Elis in just a few minutes. Do it your way.

A great starting point for your Elis 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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