Getlink (ENXTPA:GET): Exploring Valuation After Mixed October Traffic Trends

Getlink (ENXTPA:GET) just released its October traffic results, revealing fewer freight trucks but more passenger vehicles crossing the Channel compared to last year. This mix of shifts could shape how investors view the company's momentum.

See our latest analysis for Getlink.

Getlink’s recent update comes as the share price has slipped around 10% in the past quarter, even with total shareholder return up 4.4% over the last year. Strong passenger traffic may point to growth potential, but mixed freight trends and recent price softness suggest investors are reassessing the outlook and risks in light of these operational shifts.

If you’re watching these shifts and wondering where else momentum could be building, it might be the right moment to discover fast growing stocks with high insider ownership

With shares trading at a discount to analyst targets but soft freight figures muddying the picture, investors are left to ask whether Getlink is undervalued or if the market is already accounting for future growth.

Price-to-Earnings of 32.5x: Is it justified?

With Getlink trading at a Price-to-Earnings (P/E) ratio of 32.5x, the stock sits below the peer average of 39.1x, but it remains notably higher than broader industry levels. This suggests that the market is attaching a premium to Getlink’s earnings at present.

The P/E ratio is a measure of how much investors are willing to pay for one euro of current earnings. For infrastructure companies like Getlink, this multiple reflects expectations of stable, long-term cash flows and potential growth in travel and freight.

Despite being cheaper than its immediate peers, Getlink’s valuation stands well above the European Infrastructure industry average and also exceeds the estimated fair P/E ratio. This divergence signals that the current pricing may be ambitious relative to fundamentals, and the market could adjust as expectations change.

Result: Price-to-Earnings of 32.5x (ABOUT RIGHT)

Explore the SWS fair ratio for Getlink

However, slowing freight volumes and recent share price softness could still pose risks, which may put pressure on growth expectations and market confidence moving forward.

Find out about the key risks to this Getlink narrative.

Another View: DCF Model Suggests Overvaluation

While Getlink’s earnings multiple paints a picture of fair pricing next to peers, our DCF model tells a different story. Based on estimated future cash flows, the SWS DCF model values Getlink at €7.65, which is well below its current share price. This signals potential overvaluation in the market’s eyes for now. Could the market be expecting something the DCF model does not capture?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Getlink for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 901 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Getlink Narrative

If you want to dig into the numbers yourself or believe a different story is unfolding, it only takes a few minutes to build your own view and Do it your way

A great starting point for your Getlink research is our analysis highlighting 1 key reward 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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