Veolia Environnement (ENXTPA:VIE) Valuation Spotlight After Strategic Chilean Desalination Plant Contract Win

Veolia Environnement (ENXTPA:VIE) recently secured the Operation and Maintenance contract for the Aguas Pacífico desalination plant in Valparaíso, Chile. The company emerged ahead of several major global and local competitors after a rigorous tender process.

See our latest analysis for Veolia Environnement.

Veolia Environnement’s recent contract win in Chile comes shortly after another noteworthy partnership in the United States, where it signed a new 10-year wastewater treatment agreement with the City of Holyoke. While investors have seen a 9.2% year-to-date share price return and a 3.7% total shareholder return over the past year, the long-term picture is even brighter, with the past five years delivering a total shareholder return of 125%. With momentum building on both the business and share price fronts, Veolia’s focus on sustainability and operational expertise continues to resonate with the market.

If Veolia’s strategic moves have you thinking bigger, now’s a great moment to discover fast growing stocks with high insider ownership.

Given Veolia’s robust recent performance and new contract wins, is now an attractive entry point for investors, or is the company’s future growth already reflected in the current share price?

Most Popular Narrative: 15.2% Undervalued

Veolia’s most followed narrative sees a fair value meaningfully above the last close of €29.74, signaling room for price gains if estimates materialize. Here is a direct look at the assumptions that shape this view.

Strong multi-year growth in Water Technologies and Hazardous Waste segments is being driven by rising health, resilience, and environmental compliance requirements worldwide, as reflected in Veolia's record order book and robust +8.9% growth in booster activities. This is likely to support sustained revenue and EBITDA growth, underpinned by tightening global regulations on pollution and water safety.

Read the complete narrative.

This narrative is driven by bold growth in high-value segments and ambitious projections for margin expansion. Want to know which forward-looking financial assumptions are powering this premium? Discover the factors making analysts set their sights higher for Veolia’s future.

Result: Fair Value of €35.07 (UNDERVALUED)

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

However, risks remain, including challenges with integrating recent acquisitions and pressure from flat tariffs or rising costs in key markets. These factors could threaten future margins.

Find out about the key risks to this Veolia Environnement narrative.

Build Your Own Veolia Environnement Narrative

If you see the numbers differently, or want to tailor your own view, you can build a custom narrative in just a few minutes as well, so give it a try and Do it your way.

A great starting point for your Veolia Environnement research is our analysis highlighting 4 key rewards 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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