Exor (ENXTAM:EXO): Exploring Valuation After Joining the Euronext 100 Index

Exor (ENXTAM:EXO) has just joined the Euronext 100 Index, a key European equity benchmark. This inclusion puts the company in the spotlight and could attract broader investor attention, influencing trading dynamics in the coming weeks.

See our latest analysis for Exor.

Exor's inclusion in the Euronext 100 comes just after it settled a €600 million note issuance, reinforcing its profile among investors. While recent momentum has been mixed, with a 1-year total shareholder return of -19.7% and modest gains in the past month, the company's multi-year performance suggests it is navigating a period of changing market sentiment.

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With Exor now in the Euronext 100 and trading at a notable discount to analyst targets, the question is whether investors are looking at an undervalued opportunity or if future growth is already reflected in the price.

Price-to-Book of 0.4x: Is it justified?

Exor's shares last closed at €75.7, reflecting a price-to-book (P/B) ratio of 0.4x. This suggests the stock is trading significantly below its book value, an unusual discount among peers in the European diversified financial sector.

The price-to-book ratio measures a company's market value relative to its net asset (book) value. For diversified financials, a low P/B can indicate that the market is undervaluing the company’s underlying assets or is skeptical about its future profitability.

At 0.4x, Exor’s price-to-book ratio is not only far below the European sector average of 1x but also well beneath the peer group average of 6x. This level of discount is hard to ignore and could signal a valuation floor that the market may eventually move toward, especially as the company approaches expected profitability.

Explore the SWS fair ratio for Exor

Result: Price-to-Book of 0.4x (UNDERVALUED)

However, lingering net losses and ongoing market skepticism about Exor’s future growth remain key risks that could limit any recovery in valuation.

Find out about the key risks to this Exor narrative.

Another View: What About Fair Value?

While the price-to-book ratio suggests Exor is deeply undervalued, there is another way to look at things. Our SWS DCF model estimates the company's fair value at €458.97, much higher than its current share price of €75.7. That is a massive gap, but could it be too optimistic?

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 Exor 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 875 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 Exor Narrative

If this perspective does not align with yours or you would rather dive into the details yourself, it only takes a few minutes to put together your own view and shape the story. So why not Do it your way

A great starting point for your Exor research is our analysis highlighting 3 key rewards and 1 important warning sign 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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