Stock Analysis

3 Euronext Paris Stocks Estimated To Be Trading Below Their Intrinsic Value

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As global markets face renewed fears about economic growth, the French CAC 40 Index has not been immune to these concerns, recently experiencing a notable decline. In this environment of uncertainty, identifying stocks trading below their intrinsic value can present unique opportunities for investors. A good stock in such conditions often exhibits strong fundamentals and resilience against market volatility, making it potentially undervalued despite broader economic challenges.

Top 10 Undervalued Stocks Based On Cash Flows In France

NameCurrent PriceFair Value (Est)Discount (Est)
NSE (ENXTPA:ALNSE)€29.30€58.4449.9%
Antin Infrastructure Partners SAS (ENXTPA:ANTIN)€11.70€17.4733%
Vivendi (ENXTPA:VIV)€10.085€18.2444.7%
Safran (ENXTPA:SAF)€194.05€307.3736.9%
Lectra (ENXTPA:LSS)€28.30€53.9147.5%
Guillemot (ENXTPA:GUI)€5.36€9.0240.6%
Exosens (ENXTPA:EXENS)€21.25€42.0449.4%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)€3.05€5.1340.6%
EKINOPS (ENXTPA:EKI)€3.41€5.5838.9%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)€19.46€33.1541.3%

Click here to see the full list of 20 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

Antin Infrastructure Partners SAS (ENXTPA:ANTIN)

Overview: Antin Infrastructure Partners SAS is a private equity firm specializing in infrastructure investments, with a market cap of €2.10 billion.

Operations: Antin Infrastructure Partners SAS generates €282.87 million in revenue from its asset management segment.

Estimated Discount To Fair Value: 33%

Antin Infrastructure Partners SAS appears significantly undervalued based on discounted cash flow analysis, trading at €11.7 against an estimated fair value of €17.47. Despite recent shareholder dilution, earnings are expected to grow 25.2% annually over the next three years, outpacing both revenue growth and the broader French market. Recent dividend increases highlight potential for income investors, although current dividends are not well covered by earnings or free cash flows.

ENXTPA:ANTIN Discounted Cash Flow as at Sep 2024

Aramis Group SAS (ENXTPA:ARAMI)

Overview: Aramis Group SAS operates in the online sale of used vehicles across several European countries, including France, Belgium, the United Kingdom, Austria, Italy, and Spain, with a market cap of €441.52 million.

Operations: The company's revenue segments include B2B (€175.70 million), Services (€109.33 million), Refurbished Cars (€1.44 billion), and Pre-Registered Cars (€375.16 million).

Estimated Discount To Fair Value: 10.9%

Aramis Group SAS is trading at €5.34, below its estimated fair value of €5.99, indicating potential undervaluation based on cash flows. The company is forecast to achieve profitability within three years and expects annual revenue growth of 10.2%, outpacing the broader French market's 5.7%. However, its Return on Equity is projected to be low at 9.4% in three years, which may temper investor enthusiasm despite strong earnings growth forecasts of 117.91% annually.

ENXTPA:ARAMI Discounted Cash Flow as at Sep 2024

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm offering a comprehensive range of financing products such as senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares with a market cap of €3.87 billion.

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

Estimated Discount To Fair Value: 31.3%

Tikehau Capital, trading at €22.5, is significantly undervalued with an estimated fair value of €32.74 and is expected to see substantial earnings growth of 41.44% annually over the next three years, outpacing the French market's 12.3%. Despite this, its Return on Equity is forecasted to be low at 12%, and its dividend yield of 3.33% isn't well covered by free cash flows. Recent strategic partnerships aim to enhance global investment capabilities and presence in Asia.

ENXTPA:TKO Discounted Cash Flow as at Sep 2024

Where To Now?

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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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