Pernod Ricard (ENXTPA:RI) Valuation in Focus After Chivas Regal Crystalgold Innovation Launch

Pernod Ricard (ENXTPA:RI) is making waves with the launch of Chivas Regal Crystalgold, a clear spirit described as a technical leap for the brand. This innovation signals a fresh approach to evolving consumer preferences.

See our latest analysis for Pernod Ricard.

Pernod Ricard’s latest move with Chivas Regal Crystalgold comes at a time when the company’s share price momentum has been fairly subdued, with no notable gains over the past year. While total shareholder returns slipped 0.34% in the last twelve months, the focus on bold innovation like this suggests management is intent on sparking renewed interest and long-term growth.

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With shares still trading below analyst estimates and the company unveiling new products, the key question emerges: is there hidden value on offer for investors, or has the market already factored in future growth?

Most Popular Narrative: 23.2% Undervalued

Pernod Ricard’s current share price of €83.62 sits well below the most widely followed fair value estimate of €108.84. This sizable gap raises the stakes for those evaluating whether today’s price is a rare opportunity or a reflection of hidden risks. Let’s see what’s driving analysts’ views.

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. This is supported by ongoing consumer appetite for higher-value, experiential brands.

Read the complete narrative.

What's the secret ingredient powering such a bullish valuation? The most popular narrative counts on margin upgrades and pricing power in new markets, but the precise assumptions and bold margin forecasts might surprise you. Dive in to discover what really makes this price target tick.

Result: Fair Value of €108.84 (UNDERVALUED)

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

However, sustained revenue declines in key markets or unexpected regulatory shifts could quickly challenge the bullish outlook and prompt a reconsideration of future growth.

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

Build Your Own Pernod Ricard Narrative

If this perspective doesn't resonate, or you’re keen to dig deeper into the numbers yourself, take a few minutes to shape your own view: 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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