Airbus (ENXTPA:AIR) Valuation Check After Strong Multi‑Year Returns and Recent Share Price Pullback
Airbus (ENXTPA:AIR) has quietly become one of the stronger long term performers in European industrials, and the recent pullback after a 22% year to date climb has investors asking whether the stock still offers value.
See our latest analysis for Airbus.
With the share price now around $195.44 after a recent pullback, the stock still boasts a robust 22.04% year to date share price return and an impressive 5 year total shareholder return of 128.92%. This suggests momentum has cooled slightly, but the longer term trend remains firmly positive.
If Airbus has you rethinking aerospace exposure, it could be worth seeing what else the sector offers by exploring aerospace and defense stocks.
With double digit growth, a sizeable intrinsic value gap, and shares still trading below analyst targets despite strong multi year returns, investors now face a key question: is Airbus a genuine value opportunity, or is future growth already baked in?
Most Popular Narrative Narrative: 12.9% Undervalued
With Airbus last closing at €195.44 against a narrative fair value of €224.40, the valuation hinges on sustained growth and rising profitability over several years.
Analysts expect earnings to reach €7.9 billion (and earnings per share of €10.17) by about September 2028, up from €4.9 billion today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting €8.7 billion in earnings, and the most bearish expecting €6.1 billion.
Want to see what powers that earnings jump, and why the valuation still points higher even with a lower future multiple and modest discount rate? Explore the full narrative to unpack the growth, margin, and cash flow assumptions driving that gap between price and perceived value.
Result: Fair Value of €224.40 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent engine supply bottlenecks and delayed supplier integrations could derail the planned production ramp up. This may strain cash flows and undermine the undervaluation thesis.
Find out about the key risks to this Airbus narrative.
Build Your Own Airbus Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom view of Airbus in just minutes, Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Airbus.
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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.
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