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Airbus And Two Additional Stocks That May Be Trading Below Their Estimated True Value On Euronext Paris

Amidst a broadly positive week for European markets, with France's CAC 40 Index notably rising by 1.67%, investors are keenly observing potential opportunities. This environment may be conducive to identifying stocks like Airbus and two others that appear undervalued, potentially offering attractive entry points in the current market scenario.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name

Current Price

Fair Value (Est)

Discount (Est)

Vente-Unique.com (ENXTPA:ALVU)

€15.15

€29.86

49.3%

Airbus (ENXTPA:AIR)

€148.58

€218.22

31.9%

Kaufman & Broad (ENXTPA:KOF)

€27.40

€52.96

48.3%

Lectra (ENXTPA:LSS)

€27.90

€43.17

35.4%

Wavestone (ENXTPA:WAVE)

€53.10

€88.63

40.1%

Vivendi (ENXTPA:VIV)

€9.79

€15.52

36.9%

MEMSCAP (ENXTPA:MEMS)

€5.46

€8.56

36.2%

Tikehau Capital (ENXTPA:TKO)

€22.05

€32.43

32%

Thales (ENXTPA:HO)

€156.60

€254.74

38.5%

Groupe Airwell Société anonyme (ENXTPA:ALAIR)

€3.88

€6.72

42.3%

Click here to see the full list of 14 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

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Underneath we present a selection of stocks filtered out by our screen

Airbus

Overview: Airbus SE operates globally, focusing on the design, manufacture, and delivery of aerospace products, services, and solutions with a market capitalization of approximately €117.45 billion.

Operations: The company generates revenue primarily through its segments, with €48.82 billion from commercial aircraft, €11.60 billion from defense and space activities, and €7.20 billion from helicopter operations.

Estimated Discount To Fair Value: 31.9%

Airbus SE, priced at €148.58, is trading 31.9% below its fair value of €218.22, indicating significant undervaluation based on discounted cash flow analysis. With earnings growth forecasted at 17.5% annually, surpassing the French market's 11%, and a projected high return on equity of 28.1%, Airbus shows promising financial health and growth potential. Recent strategic moves include exploring hydrogen infrastructure in Canadian airports to support aviation decarbonization, highlighting its commitment to innovation and environmental sustainability.

ENXTPA:AIR Discounted Cash Flow as at Jun 2024
ENXTPA:AIR Discounted Cash Flow as at Jun 2024

Thales

Overview: Thales S.A. is a global company offering a range of solutions in defense, aerospace, digital identity and security, and transportation sectors, with a market capitalization of approximately €32.36 billion.

Operations: Thales generates revenue through its segments in aerospace (€5.34 billion), digital identity and security (€3.42 billion), and defense and security excluding digital identity and security (€10.18 billion).

Estimated Discount To Fair Value: 38.5%

Thales, valued at €156.60, is currently undervalued by 38.5% against a fair value of €254.74, reflecting potential unrecognized worth based on discounted cash flow analysis. Although the company's earnings growth is expected at 15.05% annually, slightly above the French market forecast of 11%, its high debt level poses a financial challenge. Recent strategic collaborations in cybersecurity and air traffic management could enhance its market position and customer base, leveraging its extensive experience in defense and technology sectors.

ENXTPA:HO Discounted Cash Flow as at Jun 2024
ENXTPA:HO Discounted Cash Flow as at Jun 2024

Vivendi

Overview: Vivendi SE is a France-based entertainment, media, and communication company with operations across Europe, the Americas, Asia/Oceania, and Africa, boasting a market capitalization of approximately €10.03 billion.

Operations: Vivendi's revenue streams are primarily derived from Canal + Group (€6.06 billion), Havas Group (€2.87 billion), Lagardère (€0.67 billion), Gameloft (€0.31 billion), Prisma Media (€0.31 billion), Vivendi Village (€0.18 billion), and New Initiatives (€0.15 billion).

Estimated Discount To Fair Value: 36.9%

Vivendi SE, priced at €9.79, is significantly undervalued by 36.9% relative to its fair value of €15.52, derived from discounted cash flow analysis. The company recently reported a substantial revenue increase to €4.27 billion in Q1 2024 from €2.29 billion the previous year and has become profitable this year. Despite a volatile dividend history, earnings are projected to grow by 29.26% annually over the next three years, outpacing the French market's expectation of 11%.

ENXTPA:VIV Discounted Cash Flow as at Jun 2024
ENXTPA:VIV Discounted Cash Flow as at Jun 2024

Where To Now?

Searching for a Fresh Perspective?

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.

Companies discussed in this article include ENXTPA:AIR ENXTPA:HO and ENXTPA:VIV.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com