Operations: The firm generates revenue primarily from two segments: investment activities, which brought in €179.19 million, and asset management activities, contributing €322.32 million.

Estimated Discount To Fair Value: 28.8%

Tikehau Capital, priced at €23.3, is currently valued 28.8% below its fair value of €32.72, suggesting it is undervalued based on cash flow analysis. Expected to grow earnings by 31.26% annually over the next three years, it outperforms the French market projection of 10.9%. However, its dividend coverage by free cash flows is weak, and profit margins have declined from last year's 53.2% to 35.2%. Recently, a strategic partnership with Nikko Asset Management was formed to enhance investment capabilities in Asia.

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

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

Vivendi

Overview: Vivendi SE is a France-based entertainment, media, and communication company with operations spread across Europe, the Americas, Asia/Oceania, and Africa, boasting a market capitalization of €11.29 billion.

Operations: Vivendi's revenue is primarily generated through its Canal + Group (€6.06 billion), Havas Group (€2.87 billion), and smaller contributions from 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: 32.7%

Vivendi, priced at €11.02, trades significantly below its fair value of €16.37, indicating a potential undervaluation based on cash flow metrics. With an expected annual earnings growth of 29.27% over the next three years and revenue growth also outpacing the French market average, its financial prospects appear robust despite a low forecasted return on equity of 6%. Recent strategic moves include plans for Canal+'s listing and settling longstanding legal disputes, which may positively influence future financial stability and market perception.

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

• Navigate through the intricacies of Vivendi with our comprehensive financial health report here.

Taking Advantage

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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:HO ENXTPA:TKO and ENXTPA:VIV.

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