3 Euronext Paris Stocks Estimated To Be Trading At Discounts Of Up To 42.3%

As the French CAC 40 Index shows modest gains amidst a cautious European market environment, investors are increasingly on the lookout for opportunities that may offer significant value. In this context, identifying undervalued stocks becomes crucial, especially given the current economic conditions and monetary policies.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
Antin Infrastructure Partners SAS (ENXTPA:ANTIN)	€12.00	€16.86	28.8%
SPIE (ENXTPA:SPIE)	€36.50	€52.59	30.6%
NSE (ENXTPA:ALNSE)	€30.00	€57.52	47.8%
Vivendi (ENXTPA:VIV)	€10.495	€18.20	42.3%
Lectra (ENXTPA:LSS)	€29.05	€53.64	45.8%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.05	€5.10	40.2%
EKINOPS (ENXTPA:EKI)	€3.92	€5.74	31.7%
Solutions 30 (ENXTPA:S30)	€1.398	€2.51	44.3%
VusionGroup (ENXTPA:VU)	€147.60	€257.44	42.7%
OVH Groupe (ENXTPA:OVH)	€6.14	€8.79	30.1%

Click here to see the full list of 18 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €90.17 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: The company'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: 24.5%

Safran appears undervalued based on cash flows, trading 24.5% below its estimated fair value of €283.99. Despite a decline in profit margins from 14.4% to 6.4%, revenue and earnings are forecast to grow at 10.5% and 20.1% per year respectively, outpacing the French market averages. Recent earnings showed significant revenue growth but a sharp drop in net income to €57 million for H1 2024, affecting short-term profitability perceptions.

• In light of our recent growth report, it seems possible that Safran's financial performance will exceed current levels.
• Dive into the specifics of Safran here with our thorough 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 approximately €4.25 billion.

Operations: The company's revenue segments are divided into Investment Activities, generating €173.11 million, and Asset Management Activities, contributing €322.94 million.

Estimated Discount To Fair Value: 24.5%

Tikehau Capital, trading at €24.7, is significantly undervalued with an estimated fair value of €32.71. The company reported H1 2024 net income of €57.55 million, down from €71.99 million a year ago, but earnings are forecast to grow substantially at 41.45% annually over the next three years. Despite not covering its 3.04% dividend with free cash flows and having debt concerns, Tikehau's strategic partnership with Nikko Asset Management aims to enhance global investment capabilities and presence in Asia.

• The growth report we've compiled suggests that Tikehau Capital's future prospects could be on the up.
• Navigate through the intricacies of Tikehau Capital with our comprehensive financial health report here.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is an entertainment, media, and communication company with operations across multiple continents and a market cap of approximately €10.58 billion.

Operations: Vivendi SE generates revenue from various segments including Gameloft (€304 million), Havas Group (€2.92 billion), Prisma Media (€303 million), Canal+ Group (€6.20 billion), New Initiatives (€176 million), and Vivendi Village (€151 million).

Estimated Discount To Fair Value: 42.3%

Vivendi SE, trading at €10.5, is significantly undervalued with an estimated fair value of €18.2. Recent earnings show a substantial increase in sales to €9.05 billion for H1 2024, though net income slightly decreased to €159 million from the previous year. The company has completed a share buyback worth €184 million and is exploring a spinoff of Groupe Canal Plus on the London Stock Exchange, potentially enhancing its cash flows and valuation further.

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

Seize The Opportunity

• Delve into our full catalog of 18 Undervalued Euronext Paris Stocks Based On Cash Flows here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com