Pernod Ricard (ENXTPA:RI): Assessing Valuation After a 30% Year-to-Date Share Price Slide
Pernod Ricard (ENXTPA:RI) has had a rough year in the market, with the share price slipping almost 30% year to date, even as revenues and net income are still inching higher.
See our latest analysis for Pernod Ricard.
That slump contrasts with a modest 1 week share price return of 1.9%, suggesting bargain hunters are testing the waters even as the 1 year total shareholder return of negative 25.3% shows momentum has clearly faded over a longer stretch.
If you are reassessing your portfolio after Pernod Ricard’s slide, it could be worth exploring fast growing stocks with high insider ownership as a way to uncover fresh opportunities with stronger momentum.
With earnings still growing and the share price now trading at a steep discount to analyst targets and some intrinsic value estimates, is Pernod Ricard quietly undervalued, or is the market already bracing for weaker future growth?
Most Popular Narrative Narrative: 23.8% Undervalued
With Pernod Ricard’s fair value pinned near €100.9 versus a last close of €76.86, the most followed narrative implies meaningful upside from today’s levels.
A new phase of operational efficiency, with a targeted €1 billion in further cost savings by 2029, and an already completed €900 million program, is expected to support ongoing organic margin expansion and improved free cash flow conversion (targeting ~80%), enhancing earnings resilience despite short term headwinds.
Curious how modest top line expectations still support a richer future earnings multiple, while margins quietly climb higher in the background and cash generation does the heavy lifting.
Result: Fair Value of €100.89 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent demand softness in key markets like the U.S. and China, along with tougher regulation and taxes, could quickly weaken the bullish margin expansion story.
Find out about the key risks to this Pernod Ricard narrative.
Build Your Own Pernod Ricard Narrative
If you would rather challenge the consensus and dig into the numbers yourself, you can build a fresh perspective in just minutes: Do it your way.
A great starting point for your Pernod Ricard research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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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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