In This Article:
Amidst a backdrop of political stability and easing monetary policies, the French market, as reflected by the CAC 40 Index's recent gain of 1.67%, shows promising signs for investors looking for value opportunities. In such an environment, identifying undervalued stocks like Airbus can be particularly compelling as they may benefit from broader economic tailwinds and sector-specific dynamics.
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 | €254.73 | 38.5% |
| Groupe Airwell Société anonyme (ENXTPA:ALAIR) | €3.88 | €6.72 | 42.3% |
Here we highlight a subset of our preferred stocks from the screener
Airbus
Overview: Airbus SE operates globally, specializing in the design, manufacture, and delivery of aerospace products, services, and solutions with a market capitalization of approximately €117.45 billion.
Operations: The company's revenue is primarily generated from three segments: €48.82 billion from its core aerospace activities, €11.60 billion from its Defence and Space division, and €7.20 billion through Helicopter operations.
Estimated Discount To Fair Value: 31.9%
Airbus SE, priced at €148.58, is trading significantly below our fair value estimate of €218.22, marking a potential undervaluation based on discounted cash flow analysis. With earnings growth forecasted at 17.5% per year—outpacing the French market's 11%—and revenue expected to increase by 10.3% annually, Airbus demonstrates robust financial health relative to the broader market. Despite these positive indicators, it's crucial to note that Airbus' earnings growth isn't classified as 'significant,' hinting at moderate rather than exceptional future profitability increases.
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The analysis detailed in our Airbus growth report hints at robust future financial performance.
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Take a closer look at Airbus' balance sheet health here in our report.
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 across several key sectors, with €10.18 billion from Defense & Security (excluding Digital Identity & Security), €5.34 billion from Aerospace, and €3.42 billion from Digital Identity & Security.