3 Euronext Paris Stocks Conceivably Trading Below Intrinsic Value By Over 30.2%

Amid recent declines in the CAC 40 Index and broader European markets, concerns about global economic growth have taken center stage. Despite this downturn, opportunities may exist for discerning investors to uncover stocks trading below their intrinsic value. In today's market environment, identifying undervalued stocks involves looking for companies with strong fundamentals that are temporarily out of favor. This article will explore three Euronext Paris stocks that could be trading at a discount of over 30.2% to their true worth.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€36.12	€52.77	31.6%
NSE (ENXTPA:ALNSE)	€29.30	€58.25	49.7%
Vivendi (ENXTPA:VIV)	€10.065	€18.15	44.5%
Safran (ENXTPA:SAF)	€196.20	€287.07	31.7%
Arcure (ENXTPA:ALCUR)	€5.84	€8.51	31.4%
Lectra (ENXTPA:LSS)	€28.50	€53.75	47%
Guillemot (ENXTPA:GUI)	€5.14	€9.00	42.9%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.13	40.4%
EKINOPS (ENXTPA:EKI)	€3.655	€5.72	36.1%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)	€19.50	€32.82	40.6%

Click here to see the full list of 17 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

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 €1.16 billion.

Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).

Estimated Discount To Fair Value: 31.4%

OVH Groupe appears undervalued based on cash flows, trading 31.4% below its estimated fair value of €8.88 per share. Recent product innovations like the ADV-Gen3 Bare Metal servers enhance performance and cost efficiency, potentially boosting future cash flows. Despite a volatile share price and low forecasted Return on Equity (1.7%), OVH's revenue is expected to grow faster than the French market at 9.7% annually, with profitability anticipated within three years.

• The growth report we've compiled suggests that OVH Groupe's future prospects could be on the up.
• Click to explore a detailed breakdown of our findings in OVH Groupe's balance sheet health report.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €82.48 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: Safran's revenue segments include Aircraft Interiors (€2.73 billion), Aerospace Propulsion (€12.66 billion), and Aeronautical Equipment, Defense and Aerosystems (€9.91 billion).

Estimated Discount To Fair Value: 31.7%

Safran SA's recent financials show a significant revenue increase to €13.41 billion for H1 2024, but net income dropped sharply to €57 million. Despite this, the stock trades at €196.2, well below its estimated fair value of €287.07, indicating it is undervalued based on cash flows. The anticipated acquisition of Preligens SAS could enhance Safran's AI capabilities and support future growth in digital transformation and international markets, particularly the U.S.

• Upon reviewing our latest growth report, Safran's projected financial performance appears quite optimistic.
• Unlock comprehensive insights into our analysis of Safran stock in this financial health report.

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm that offers a comprehensive range of financing products, including senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares; it has a market cap of €3.91 billion.

Operations: The company's revenue segments are comprised of €173.11 million from Investment Activities and €322.94 million from Asset Management Activities.

Estimated Discount To Fair Value: 30.2%

Tikehau Capital, trading at €22.75, is significantly undervalued based on cash flows with an estimated fair value of €32.6. Despite a decline in net income to €57.55 million for H1 2024, the company’s earnings are forecast to grow 41.44% annually over the next three years, outpacing the French market's growth rate. However, its dividend sustainability remains questionable as it is not well covered by free cash flows and debt coverage by operating cash flow is weak.

• Our comprehensive growth report raises the possibility that Tikehau Capital is poised for substantial financial growth.
• Click here to discover the nuances of Tikehau Capital with our detailed financial health report.

Where To Now?

• Navigate through the entire inventory of 17 Undervalued Euronext Paris Stocks Based On Cash Flows here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
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Ready To Venture Into Other Investment Styles?

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• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

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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