Danone (ENXTPA:BN): Assessing Valuation After a Recent 3% Share Price Pullback

Danone (ENXTPA:BN) has quietly slipped about 3 % over the past month, even as its year to date gain sits near 17 %, prompting a fresh look at whether the current pullback offers value.

See our latest analysis for Danone.

That recent 3 % slide caps a softer 30 day share price return of around minus 3 %, but it comes after a solid year to date share price gain and strong multi year total shareholder returns. This suggests momentum is pausing rather than breaking.

If Danone’s quieter pullback has you thinking about where else capital might compound steadily, it might be worth scanning healthcare stocks for other resilient, demand driven names.

With earnings still growing, an intrinsic value estimate suggesting a sizable discount, and the share price hovering just below analyst targets, is Danone quietly offering upside potential, or is the market already baking in the next leg of growth?

Most Popular Narrative Narrative: 4.3% Undervalued

With Danone last closing at €75.66 against a narrative fair value of €79.02, the current pullback still sits below that implied mark. This frames the backdrop for how growth and margins are expected to evolve.

Strategic investments and recent acquisitions (Kate Farms, The Akkermansia Company) strengthen Danone's leadership in plant-based, gut health, and medical nutrition, reinforcing differentiation and supporting both premiumization (higher revenue per unit sold) and improved long-term margin potential.

Read the complete narrative.

Want to see what powers that premium nutrition bet? The narrative leans on steadily rising revenues, fatter margins, and a future earnings multiple that might surprise you.

Result: Fair Value of €79.02 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering execution issues in North America and currency volatility across key markets could quickly challenge today’s steady growth and margin assumptions.

Find out about the key risks to this Danone narrative.

Another View: Multiples Paint a Richer Picture

Set against that 4.3 % narrative discount, Danone’s price to earnings ratio of 26.6 times looks demanding versus the European food sector at 15.3 times and a fair ratio of 24.6 times, hinting at limited margin for error if growth or margins wobble.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Danone Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes using Do it your way.

A great starting point for your Danone research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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