Eurazeo (ENXTPA:RF) Valuation Check as New Evergreen Funds Expand Its European Private Wealth Platform

Eurazeo (ENXTPA:RF) just rolled out two new Evergreen funds, EPIC for private debt and EPSO for secondary private equity, extending its Wealth platform across key European markets in line with its 2024 to 2027 strategy.

See our latest analysis for Eurazeo.

The launch of EPIC and EPSO comes as the share price hovers around €54.5, with a 7 day share price return of 3.1 percent. However, the year to date share price return remains nearly 25 percent lower, suggesting long term total shareholder returns remain positive while near term momentum is only starting to rebuild.

If this kind of private markets expansion interests you, it could be worth scanning other diversified financial names and discovering fast growing stocks with high insider ownership.

With the shares still trading well below both their recent peak and analyst targets despite robust growth in Eurazeo’s platform, investors now face a key question: is this a mispriced restructuring story, or is the market already factoring in the next leg of expansion?

Price to Book of 0.5x: Is it justified?

On a price to book basis, Eurazeo trades at 0.5x, suggesting the market is valuing its equity at a steep discount to peers.

The price to book ratio compares the company’s market value to its net assets on the balance sheet. This is a key yardstick for asset heavy and investment driven groups such as diversified financials. For Eurazeo, the low multiple implies investors are skeptical about the quality or future profitability of the balance sheet, even as the platform expands and management targets a return to profit.

Compared with both its direct peer set, where the average price to book stands at 0.9x, and the broader European diversified financials sector, which averages 1x, Eurazeo’s 0.5x multiple looks strikingly low. It points to a significant valuation gap that could close if execution on growth and profitability targets stays on track.

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

Result: Price to book of 0.5x (UNDERVALUED)

Beyond simple multiples, the SWS DCF model implies an even larger disconnect, with an estimated fair value of €182.89 against the latest close of €54.5. The model projects Eurazeo’s future cash flows and discounts them back to today, capturing the impact of its expected swing to profitability and rapid revenue expansion.

That framework fits a business in transition like Eurazeo. Near term losses and restructuring can obscure the earnings power of an expanding private markets platform and the longer dated fee and performance income tied to its funds.

Look into how the SWS DCF model arrives at its fair value.

Result: DCF Fair value of €182.89 (UNDERVALUED)

However, sustained losses and any stumble in scaling its diversified investment platform could reinforce the discount and delay any meaningful rerating in the shares.

Find out about the key risks to this Eurazeo narrative.

Another Way to Look at Value

Our DCF model already paints Eurazeo as deeply undervalued, but no single method has a monopoly on truth, especially with loss making, fast growing platforms. If execution stutters or funding costs bite, today’s discount could simply be fair compensation for higher risk.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Eurazeo for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 899 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Eurazeo Narrative

If you prefer to dig into the numbers and challenge these assumptions yourself, you can build a personalized view in just a few minutes: Do it your way.

A great starting point for your Eurazeo research is our analysis highlighting 3 key rewards and 2 important warning signs 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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