As global markets react to the recent U.S. Federal Reserve rate cut, European indices have shown mixed results, with France's CAC 40 Index posting modest gains. Amid this evolving economic landscape, identifying undervalued stocks becomes crucial for investors seeking potential opportunities. In the current market conditions, a good stock is often characterized by strong fundamentals and trading below its intrinsic value. Here are three Euronext Paris stocks estimated to be trading up to 49.2% below their intrinsic value, offering potential for significant upside as market dynamics unfold.

Top 10 Undervalued Stocks Based On Cash Flows In France

Click here to see the full list of 22 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Eurobio Scientific Société anonyme

Overview: Eurobio Scientific Société anonyme designs, develops, and commercializes in vitro diagnostics products for transplantation, immunology, infectious diseases, life-science, and cancer; it has a market cap of €251.09 million.

Operations: Eurobio Scientific Société anonyme generates €130.65 million from its Diagnostics and Therapeutics segment.

Estimated Discount To Fair Value: 49.2%

Eurobio Scientific Société anonyme is trading at €25, significantly below its estimated fair value of €49.2. Recent earnings for the half year ended June 30, 2024, showed sales rising to €73.11 million from €58.99 million a year ago and net income doubling to €4 million. Despite improved revenue and profit margins, the stock remains highly undervalued based on discounted cash flow analysis, with earnings forecasted to grow 31.6% annually over the next three years.

• Our expertly prepared growth report on Eurobio Scientific Société anonyme implies its future financial outlook may be stronger than recent results.

• Click to explore a detailed breakdown of our findings in Eurobio Scientific Société anonyme's balance sheet health report.

Safran

Overview: Safran SA, with a market cap of €89.62 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: Safran's revenue segments include Aerospace Propulsion (€12.66 billion), Aeronautical Equipment, Defense and Aerosystems (€9.91 billion), and Aircraft Interiors (€2.73 billion).

Estimated Discount To Fair Value: 24.9%

Safran SA, trading at €213.2, is significantly undervalued compared to its estimated fair value of €283.71. Recent earnings for H1 2024 showed revenue rising to €13.41 billion from €11.36 billion a year ago, though net income dropped sharply to €57 million from €1.86 billion. Despite lower profit margins and earnings per share, the stock is forecasted for strong annual profit growth of 20%, outpacing the French market's 12%.

• Upon reviewing our latest growth report, Safran's projected financial performance appears quite optimistic.

• Click here and access our complete balance sheet health report to understand the dynamics of Safran.

Vivendi

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 €10.45 billion.

Operations: Vivendi SE's revenue segments include Canal+ Group (€6.20 billion), Havas Group (€2.92 billion), Segment Adjustment (€4.86 billion), Gameloft (€304 million), Prisma Media (€303 million), New Initiatives (€176 million), and Vivendi Village (€151 million).

Estimated Discount To Fair Value: 42.6%

Vivendi, trading at €10.37, is significantly undervalued compared to its estimated fair value of €18.06. Despite a recent dip in net income to €159 million for H1 2024 from €174 million the previous year, the company’s earnings are forecasted to grow at 30.6% annually over the next three years, outpacing the French market's 12.2%. Additionally, Vivendi has completed a share buyback program and is exploring a potential spinoff of Canal+.

• According our earnings growth report, there's an indication that Vivendi might be ready to expand.

• Delve into the full analysis health report here for a deeper understanding of Vivendi.

Next Steps

• Reveal the 22 hidden gems among our Undervalued Euronext Paris Stocks Based On Cash Flows screener with a single click here.

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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.

Companies discussed in this article include ENXTPA:ALERS ENXTPA:SAF and ENXTPA:VIV.

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