3 Euronext Paris Stocks Estimated To Be Trading Below Fair Value

As the French stock market shows resilience with a 1.54% gain in the CAC 40 Index following the European Central Bank's recent rate cut, investors are increasingly on the lookout for undervalued opportunities. In this context, identifying stocks trading below their fair value can offer significant potential for growth and stability amid fluctuating economic conditions.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€37.18	€52.92	29.7%
NSE (ENXTPA:ALNSE)	€30.00	€57.82	48.1%
Vivendi (ENXTPA:VIV)	€10.09	€18.06	44.1%
Safran (ENXTPA:SAF)	€203.30	€285.03	28.7%
Guillemot (ENXTPA:GUI)	€5.04	€8.99	43.9%
Lectra (ENXTPA:LSS)	€28.85	€53.77	46.3%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.12	40.2%
EKINOPS (ENXTPA:EKI)	€3.855	€5.74	32.8%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)	€20.55	€35.58	42.2%
OVH Groupe (ENXTPA:OVH)	€6.17	€8.89	30.6%

Click here to see the full list of 16 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Let's dive into some prime choices out of the screener.

Safran (ENXTPA:SAF)

Overview: Safran SA, with a market cap of €85.46 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: The company's revenue is primarily derived from Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).

Estimated Discount To Fair Value: 28.7%

Safran (€203.3) is trading 28.7% below its estimated fair value of €285.03, indicating it may be undervalued based on cash flows. The company's revenue is forecast to grow at 10.5% annually, outpacing the French market's 5.8%. Despite a significant drop in net income from €1,863 million to €57 million for H1 2024, earnings are expected to grow significantly at over 20% per year over the next three years.

• Our earnings growth report unveils the potential for significant increases in Safran's future results.
• Click here and access our complete balance sheet health report to understand the dynamics of Safran.

SPIE (ENXTPA:SPIE)

Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally with a market cap of approximately €6.21 billion.

Operations: The company's revenue segments include North-Western Europe (€1.89 billion), Global Services Energy (€684.90 million), and Holdings (€23.80 million).

Estimated Discount To Fair Value: 29.7%

SPIE (€37.18) is trading 29.7% below its estimated fair value of €52.92, suggesting it is undervalued based on cash flows. Despite a decrease in net income from €73.17 million to €56.75 million for H1 2024, earnings are forecast to grow significantly at over 20% annually, outpacing the French market's growth rate of 12.4%. However, the company has a high level of debt and an unstable dividend track record.

• Our growth report here indicates SPIE may be poised for an improving outlook.
• Click here to discover the nuances of SPIE with our detailed 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, with a market cap of €4.08 billion.

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

Estimated Discount To Fair Value: 27.5%

Tikehau Capital (€23.7) is trading 27.5% below its estimated fair value of €32.68, indicating it is undervalued based on cash flows. The company's earnings are forecast to grow significantly at 41.4% annually, well above the French market's growth rate of 12.4%. However, its dividend yield of 3.16% is not well covered by free cash flows, and debt levels are not well supported by operating cash flow despite recent strategic partnerships and share buybacks enhancing its market position.

• Insights from our recent growth report point to a promising forecast for Tikehau Capital's business outlook.
• Navigate through the intricacies of Tikehau Capital with our comprehensive financial health report here.

Seize The Opportunity

• Click through to start exploring the rest of the 13 Undervalued Euronext Paris Stocks Based On Cash Flows now.
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Curious About Other Options?

• 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.

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