3 Euronext Paris Stocks Possibly Trading At Up To 47.9% Discount

In recent weeks, the French CAC 40 Index has seen modest gains, reflecting a broader European trend driven by slowing inflation and cautious optimism about potential interest rate cuts from the European Central Bank. As investors navigate these conditions, identifying undervalued stocks becomes crucial for capitalizing on market opportunities. A good stock in this environment is typically characterized by strong fundamentals and a price that does not fully reflect its intrinsic value. This article will explore three Euronext Paris stocks that may be trading at significant discounts, offering potential upside for discerning investors.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name	Current Price	Fair Value (Est)	Discount (Est)
Tikehau Capital (ENXTPA:TKO)	€21.95	€32.21	31.8%
SPIE (ENXTPA:SPIE)	€36.28	€52.66	31.1%
MEMSCAP (ENXTPA:MEMS)	€5.94	€10.50	43.4%
Vivendi (ENXTPA:VIV)	€10.13	€18.14	44.2%
Safran (ENXTPA:SAF)	€194.40	€304.74	36.2%
Lectra (ENXTPA:LSS)	€28.00	€53.79	47.9%
Guillemot (ENXTPA:GUI)	€5.30	€9.01	41.1%
Groupe Berkem Société anonyme (ENXTPA:ALKEM)	€3.05	€5.10	40.2%
EKINOPS (ENXTPA:EKI)	€3.395	€5.54	38.8%
OVH Groupe (ENXTPA:OVH)	€5.52	€8.49	35%

Click here to see the full list of 18 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

We'll examine a selection from our screener results.

Lectra (ENXTPA:LSS)

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern Europe, Southern Europe, the Americas, and the Asia Pacific, with a market cap of €1.06 billion.

Operations: Revenue segments for the company are €172.65 million from the Americas and €118.54 million from the Asia-Pacific region.

Estimated Discount To Fair Value: 47.9%

Lectra SA is trading at €28, significantly below its estimated fair value of €53.79, reflecting a 47.9% undervaluation based on discounted cash flow analysis. Despite slower revenue growth forecasts of 10.4% per year, the company's earnings are expected to grow significantly at 29.3% annually over the next three years, outpacing the French market average of 12.3%. Recent half-year earnings showed sales increased to €262.29 million while net income slightly declined to €12.51 million.

• The growth report we've compiled suggests that Lectra's future prospects could be on the up.
• Click here to discover the nuances of Lectra with our detailed financial health report.

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 €6.06 billion.

Operations: The company's revenue segments include €1.89 billion from North-Western Europe and €684.90 million from Global Services Energy, with an additional €23.80 million from Holdings.

Estimated Discount To Fair Value: 31.1%

SPIE SA is trading at €36.28, well below its estimated fair value of €52.66, indicating a significant undervaluation based on discounted cash flow analysis. Despite a high level of debt and recent earnings decline to €56.75 million for H1 2024, the company’s earnings are forecast to grow at 20.13% per year, outpacing the French market average of 12.3%. Revenue growth is also expected to surpass market rates at 6.6% annually.

• Insights from our recent growth report point to a promising forecast for SPIE's business outlook.
• Click to explore a detailed breakdown of our findings in SPIE's balance sheet health report.

Vivendi (ENXTPA:VIV)

Overview: Vivendi SE is an entertainment, media, and communication company with operations across France, Europe, the Americas, Asia/Oceania, and Africa, and has a market cap of approximately €10.21 billion.

Operations: The company's revenue is primarily derived from Canal + Group (€6.20 billion), Havas Group (€2.92 billion), Gameloft (€304 million), Prisma Media (€303 million), New Initiatives (€176 million), and Vivendi Village (€151 million).

Estimated Discount To Fair Value: 44.2%

Vivendi SE, trading at €10.13, is significantly undervalued compared to its estimated fair value of €18.14. Despite a modest net income decline to €159 million for H1 2024, the company's earnings are forecast to grow at 30.6% annually, outpacing the French market average of 12.3%. Recent strategic moves include a share buyback and potential Canal+ spinoff on the London Stock Exchange, which could enhance future cash flows and investor value.

• The analysis detailed in our Vivendi growth report hints at robust future financial performance.
• Unlock comprehensive insights into our analysis of Vivendi stock in this financial health report.

Next Steps

• Navigate through the entire inventory of 18 Undervalued Euronext Paris Stocks Based On Cash Flows here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Interested In Other Possibilities?

• 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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