Estimated Discount To Fair Value: 42.3%

Thales, valued at €154.45, is perceived as undervalued against a fair value estimation of €267.69, reflecting a significant discount based on cash flows. Recent strategic alliances and product launches underline its active expansion in cybersecurity and aerospace sectors, potentially enhancing future revenue streams which are expected to grow by 6.3% annually—surpassing the French market's 5.6% growth rate. However, its financial stance is strained by high debt levels and one-off items affecting earnings quality, with a forecasted robust return on equity of 24.1% in three years.

• Our earnings growth report unveils the potential for significant increases in Thales' future results.

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

Tikehau Capital

Overview: Tikehau Capital is a private equity and venture capital firm that offers a variety of financing products such as senior secured loans, equity, senior debt, unitranche, mezzanine, and preferred shares, with a market capitalization of approximately €4.17 billion.

Operations: The firm generates revenue through two primary segments: Investment Activities, which brought in €179.19 million, and Asset Management Activities, contributing €322.32 million.

Estimated Discount To Fair Value: 26.3%

Tikehau Capital, priced at €24.1, trades 26.3% below its fair value of €32.7, suggesting undervaluation based on cash flow analysis. Despite a dividend increase to €0.75 per share in 2024, its dividend coverage by free cash flows remains weak. The firm's earnings are expected to grow by 31.26% annually, outpacing the French market's forecast of 10.9%. However, it faces challenges with a low forecast return on equity of 12.6% and declining profit margins from 53.2% to 35.2%.

• Our expertly prepared growth report on Tikehau Capital implies its future financial outlook may be stronger than recent results.

• Click to explore a detailed breakdown of our findings in Tikehau Capital's balance sheet health report.

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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:EDEN ENXTPA:HO and ENXTPA:TKO.

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