3 Potentially Undervalued Stocks On Euronext Paris

The French stock market has shown resilience, with the CAC 40 Index gaining 0.71% amid a broader European rally driven by slowing inflation rates. As investors navigate this landscape, identifying potentially undervalued stocks becomes crucial for capitalizing on future growth opportunities. In this context, we explore three stocks listed on Euronext Paris that may be undervalued based on their current valuations and market conditions.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
Tikehau Capital (ENXTPA:TKO)	€22.15	€32.48	31.8%
MEMSCAP (ENXTPA:MEMS)	€5.71	€10.52	45.7%
Vivendi (ENXTPA:VIV)	€10.20	€18.28	44.2%
Safran (ENXTPA:SAF)	€192.65	€306.34	37.1%
Lectra (ENXTPA:LSS)	€27.80	€53.84	48.4%
Guillemot (ENXTPA:GUI)	€5.34	€9.01	40.8%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.05	€5.12	40.4%
EKINOPS (ENXTPA:EKI)	€3.36	€5.55	39.5%
Pullup Entertainment Société anonyme (ENXTPA:ALPUL)	€17.46	€25.78	32.3%
OVH Groupe (ENXTPA:OVH)	€5.72	€8.67	34%

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

Let's review some notable picks from our screened stocks.

OVH Groupe (ENXTPA:OVH)

Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of €1.09 billion.

Operations: The company's revenue segments include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).

Estimated Discount To Fair Value: 34%

OVH Groupe appears significantly undervalued, trading at €5.72, which is 34% below its estimated fair value of €8.67 based on DCF analysis. Despite a highly volatile share price recently, the company’s revenue is forecast to grow at 9.7% per year, outpacing the French market average of 5.8%. Recent product innovations like the ADV-Gen3 Bare Metal servers enhance performance and sustainability, potentially driving future profitability expected within three years.

• The analysis detailed in our OVH Groupe growth report hints at robust future financial performance.
• Delve into the full analysis health report here for a deeper understanding of OVH Groupe.

SPIE (ENXTPA:SPIE)

Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €6.09 billion.

Operations: The company's revenue segments include North-Western Europe (€1.89 billion) and Global Services Energy (€684.90 million).

Estimated Discount To Fair Value: 30.9%

SPIE (€36.46) is trading at a significant discount to its estimated fair value of €52.75 based on DCF analysis, representing a 30.9% undervaluation. Despite high debt levels, the company’s earnings are forecast to grow significantly at 20.1% per year over the next three years, outpacing both its revenue growth (6.6%) and the French market average (12.3%). Recent financials show mixed results with increased sales but lower net income compared to last year’s figures.

• Our expertly prepared growth report on SPIE implies its future financial outlook may be stronger than recent results.
• Click here and access our complete balance sheet health report to understand the dynamics of SPIE.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is an entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, holding a market cap of approximately €10.28 billion.

Operations: Vivendi SE's revenue segments include Gameloft (€304 million), Havas Group (€2.92 billion), Prisma Media (€303 million), Canal+ Group (€6.20 billion), New Initiatives (€176 million), Vivendi Village (€151 million), and Segment Adjustment (€4.86 billion).

Estimated Discount To Fair Value: 44.2%

Vivendi (€10.2) is trading at 44.2% below its estimated fair value of €18.28, indicating it may be undervalued based on cash flows. The company's earnings are forecast to grow significantly at 30.6% per year, outpacing the French market average of 12.3%. Recent financials show increased sales but a slight decline in net income compared to last year. Additionally, Vivendi is exploring a potential spinoff of Canal+ and has recently settled long-standing litigation issues.

• Our comprehensive growth report raises the possibility that Vivendi is poised for substantial financial growth.
• Dive into the specifics of Vivendi here with our thorough financial health report.

Make It Happen

• Get an in-depth perspective on all 17 Undervalued Euronext Paris Stocks Based On Cash Flows by using our screener here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Contemplating Other Strategies?

• 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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