Pernod Ricard (ENXTPA:RI): Assessing Valuation Following AGM-Backed Dividend and Board Renewals

Pernod Ricard (ENXTPA:RI) caught investors’ attention after its Annual General Meeting, where shareholders approved all resolutions, including confirmation of the annual dividend and several key board appointments. This combination sets a clear tone for the months ahead.

See our latest analysis for Pernod Ricard.

Even with recent board appointments and steady dividend policy providing a tone of stability, Pernod Ricard’s share price momentum has struggled to regain its previous highs. After a challenging year, with a year-to-date share price return of -19.7% and a total shareholder return of -25.7% over the last twelve months, sentiment is still searching for a catalyst. The reaffirmed medium-term growth targets offer reasons to watch for a turnaround, but right now, investors appear cautious, as reflected in a five-year total shareholder return of -29.6%.

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So with the share price still drifting well below analyst targets, is Pernod Ricard an undervalued opportunity waiting for a turnaround, or are future growth expectations already reflected in today’s valuation?

Most Popular Narrative: 16.5% Undervalued

Compared with its most widely followed narrative, Pernod Ricard’s closing share price of €87.16 sits notably below the stated fair value of €104.33. This disconnect highlights investor caution, even as the narrative suggests a substantial margin of upside remains based on underlying fundamentals.

Sustained momentum in premiumization and innovation, as evidenced by successful launches in ready-to-drink, non-alcoholic, and premium spirits segments, positions Pernod Ricard to capture higher average selling prices and grow net margins, supported by ongoing consumer appetite for higher-value, experiential brands.

Read the complete narrative.

Curious what’s fueling this bullish target? The real story unfolds through bold margin improvements and a powerful forecast for elevated product pricing. Unlock the key assumptions driving this fair value to see what could spark the next move in Pernod Ricard’s share price.

Result: Fair Value of €104.33 (UNDERVALUED)

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

However, sustained weakness in key markets such as the U.S. and China, or stricter regulations, could quickly challenge the current bullish outlook for Pernod Ricard.

Find out about the key risks to this Pernod Ricard narrative.

Build Your Own Pernod Ricard Narrative

If this perspective doesn't align with your own, or you want to dig deeper into the numbers, you can craft your unique view in just a few minutes: Do it your way.

A great starting point for your Pernod Ricard research is our analysis highlighting 4 key rewards and 2 important warning signs 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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