3 Stocks On Euronext Paris That Might Be Undervalued

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As the European economy shows signs of revitalization, particularly with the Paris Olympics driving business activity, investors are keenly observing opportunities on Euronext Paris. With major indices like France's CAC 40 Index gaining momentum, it's an opportune time to consider stocks that might be undervalued in this buoyant market environment. In such a setting, identifying stocks that have strong fundamentals but are currently trading below their intrinsic value can offer significant potential for growth. Here are three stocks on Euronext Paris that might be undervalued and worth your attention.

Top 10 Undervalued Stocks Based On Cash Flows In France

Name

Current Price

Fair Value (Est)

Discount (Est)

SPIE (ENXTPA:SPIE)

€34.76

€49.85

30.3%

Vivendi (ENXTPA:VIV)

€9.96

€18.07

44.9%

MEMSCAP (ENXTPA:MEMS)

€6.34

€9.47

33.1%

Tikehau Capital (ENXTPA:TKO)

€22.50

€32.16

30%

Lectra (ENXTPA:LSS)

€27.50

€51.92

47%

Safran (ENXTPA:SAF)

€196.60

€303.70

35.3%

Guillemot (ENXTPA:GUI)

€5.58

€9.01

38.1%

Groupe Berkem Société anonyme (ENXTPA:ALKEM)

€3.04

€5.09

40.3%

EKINOPS (ENXTPA:EKI)

€3.49

€5.50

36.5%

OVH Groupe (ENXTPA:OVH)

€6.07

€8.80

31%

Click here to see the full list of 16 stocks from our Undervalued Euronext Paris Stocks Based On Cash Flows screener.

We're going to check out a few of the best picks from our screener tool.

Safran

Overview: Safran SA, with a market cap of €82.65 billion, operates globally in the aerospace and defense sectors through its subsidiaries.

Operations: The company's revenue segments include €2.73 billion from Aircraft Interiors, €12.66 billion from Aerospace Propulsion, and €9.91 billion from Aeronautical Equipment, Defense and Aerosystems.

Estimated Discount To Fair Value: 35.3%

Safran SA reported H1 2024 revenue of €13.41 billion, up from €11.36 billion a year ago, but net income dropped to €57 million from €1.86 billion due to increased costs and investments. Despite lower profit margins, Safran is trading at 35% below its estimated fair value of €303.7 per share and is expected to grow earnings by 21% annually over the next three years, outpacing the French market's growth rate.

ENXTPA:SAF Discounted Cash Flow as at Aug 2024
ENXTPA:SAF Discounted Cash Flow as at Aug 2024

SPIE

Overview: SPIE SA offers multi-technical services in energy and communications across France, Germany, the Netherlands, and internationally, with a market cap of €5.80 billion.

Operations: Revenue segments include €1.89 billion from North-Western Europe and €684.90 million from Global Services Energy.