L'Air Liquide (ENXTPA:AI): Assessing Valuation After a Three-Month Share Price Pullback

L'Air Liquide (ENXTPA:AI) has quietly pulled back over the past 3 months, even though earnings and revenue are still growing at a steady pace. That divergence is where the opportunity gets interesting.

See our latest analysis for L'Air Liquide.

Zooming out, that 90 day share price pullback of 6.94% comes after a solid year to date share price return of 4.71%. Longer term total shareholder returns above 50% suggest the underlying growth story is still intact, though short term momentum has clearly cooled.

If L'Air Liquide's mix of resilience and recent consolidation has you thinking more broadly about opportunities, this could be a good moment to explore healthcare stocks as a comparison set.

With earnings still climbing, a modest pullback, and analysts seeing upside from here, the real question is whether L'Air Liquide is quietly undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 17% Undervalued

With L'Air Liquide last closing at €163.20 versus a narrative fair value near €196.58, the gap hinges on how confidently future growth compounds.

The analysts have a consensus price target of €196.579 for L'Air Liquide based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €216.0, and the most bearish reporting a price target of just €154.0.

Read the complete narrative.

Want to see what justifies that higher price tag, despite only steady growth assumptions and richer profit margins, all discounted at a measured rate? The narrative spells out a detailed path for revenue, earnings, and valuation multiples that could reshape how you see this stock's upside.

Result: Fair Value of €196.58 (UNDERVALUED)

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

However, if core industrial demand remains weak for an extended period or if key hydrogen and electronics projects are delayed, the market's current optimism could be quickly challenged.

Find out about the key risks to this L'Air Liquide narrative.

Another View: Rich on Earnings

While the narrative fair value points to upside, the earnings based view is more cautious. At 27.5 times earnings versus 17.8 times for the European chemicals sector and a 21.7 times peer average, L'Air Liquide looks expensive against its 25.4 times fair ratio.

That premium can persist if growth and margins keep improving. However, if sentiment cools or forecasts slip, the share price could drift back toward the fair ratio, squeezing recent buyers. Is this a quality name worth paying up for, or a solid business at a stretched price?

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

Build Your Own L'Air Liquide Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding L'Air Liquide.

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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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