3 Euronext Paris Stocks Estimated Up To 41.9% Below Intrinsic Value

The French stock market has recently seen positive momentum, with the CAC 40 Index gaining 1.54% following an interest rate cut from the European Central Bank. This environment of cautious optimism presents potential opportunities for investors seeking undervalued stocks. In this article, we will explore three Euronext Paris stocks that are estimated to be up to 41.9% below their intrinsic value, offering a compelling case for those looking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
SPIE (ENXTPA:SPIE)	€36.80	€52.80	30.3%
NSE (ENXTPA:ALNSE)	€31.00	€57.88	46.4%
Vivendi (ENXTPA:VIV)	€10.10	€18.06	44.1%
Safran (ENXTPA:SAF)	€203.30	€285.03	28.7%
Lectra (ENXTPA:LSS)	€28.80	€53.76	46.4%
Guillemot (ENXTPA:GUI)	€5.10	€8.99	43.3%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.06	€5.12	40.2%
EKINOPS (ENXTPA:EKI)	€4.01	€5.77	30.5%
VusionGroup (ENXTPA:VU)	€150.50	€258.83	41.9%
OVH Groupe (ENXTPA:OVH)	€6.15	€8.88	30.8%

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

Let's explore several standout options from the results in 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 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: 28.7%

Safran SA's recent earnings report showed a significant increase in sales and revenue but a sharp decline in net income. Despite this, the company is forecasted to grow earnings by 20.1% annually, outpacing the French market's growth rate. Trading at €203.3, Safran is undervalued compared to its estimated fair value of €285.03 and is expected to achieve a high return on equity of 23.5% within 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.

Tikehau Capital (ENXTPA:TKO)

Overview: Tikehau Capital is a private equity and venture capital firm that offers a comprehensive suite of financing products, including senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares, with a market cap of €4.16 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: 26.2%

Tikehau Capital, trading at €24.2, is significantly undervalued compared to its estimated fair value of €32.79. Despite a recent decline in net income to €57.55 million for H1 2024, the company’s earnings are forecasted to grow by 41.4% annually over the next three years, outpacing the French market's growth rate of 12.4%. However, its dividend yield of 3.1% is not well covered by free cash flows and debt coverage remains a concern.

• Our expertly prepared growth report on Tikehau Capital implies its future financial outlook may be stronger than recent results.
• Dive into the specifics of Tikehau Capital here with our thorough financial health report.

VusionGroup (ENXTPA:VU)

Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America, with a market cap of €2.41 billion.

Operations: VusionGroup S.A. generates revenue through its digitalization solutions for commerce across Europe, Asia, and North America.

Estimated Discount To Fair Value: 41.9%

VusionGroup, trading at €150.5, is significantly undervalued compared to its estimated fair value of €258.83. Despite reporting a net loss of €24.4 million for H1 2024, the company’s revenue grew to €408.9 million from €380.7 million year-over-year and is forecasted to grow annually by 28.4%, outpacing the French market's growth rate of 5.8%. A new partnership with Ace Hardware underscores VusionGroup's innovative digital shelf label technology and potential profitability within three years.

• Our comprehensive growth report raises the possibility that VusionGroup is poised for substantial financial growth.
• Click to explore a detailed breakdown of our findings in VusionGroup's balance sheet health report.

Make It Happen

• Investigate our full lineup of 17 Undervalued Euronext Paris Stocks Based On Cash Flows right here.
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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.

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