Sanofi (ENXTPA:SAN): Exploring Current Valuation After Recent Share Price Decline

Sanofi (ENXTPA:SAN) shares have caught the attention of investors following their recent trading performance. With the company posting steady revenue and net income growth over the past year, many are evaluating the appeal of its shares at current levels.

See our latest analysis for Sanofi.

Sanofi’s share price has struggled to find momentum this year, with an 11% drop year-to-date and a one-year total shareholder return of -12.9%. However, longer-term investors have still seen gains over three and five years, which suggests confidence has not faded entirely even as short-term sentiment remains cautious following recent results.

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With shares trading near an 18-month low and analysts seeing nearly 30% upside, questions emerge: does Sanofi offer hidden value or is the market accurately reflecting its future growth potential?

Most Popular Narrative: 22.5% Undervalued

Sanofi’s most followed narrative implies shares could be trading well below their fair value, given the last close at €83.94 compared to a consensus fair value above €108. This sets a compelling context for the strong growth thesis driving the current outlook.

Sanofi's ongoing focus on innovative product launches and its strong R&D pipeline, highlighted by accelerating investments, multiple Phase III readouts through 2026, and continued expansion of biologics (e.g., Dupixent, amlitelimab), position the company to capture higher demand for chronic disease treatments in a world with an aging population. This supports robust long-term sales growth and EPS upside.

Read the complete narrative.

What is really behind the math? One headline figure is hiding a powerful combination of margin expansion and a future profit multiple that would surprise many. Want to know the specific assumptions and bold projections driving the fair value higher than today’s price? Unpack the details behind this bullish outlook.

Result: Fair Value of €108.31 (UNDERVALUED)

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

However, persistent pricing pressures and uncertainty around Sanofi’s late-stage pipeline could challenge the bullish outlook if competition increases or if there are setbacks in research and development.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

Not convinced by the prevailing view or eager to dive into the numbers yourself? You can test different scenarios and build your own perspective in just a few minutes, so why not Do it your way.

A good starting point is our analysis highlighting 6 key rewards investors are optimistic about regarding Sanofi.

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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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