Safran (ENXTPA:SAF) Following Raised 2026 Guidance, Is Fair Value Still In Reach?
Why Safran stock is in focus after new guidance and half year results
Safran (ENXTPA:SAF) drew fresh attention after its board met on 27 July to review half year 2026 figures and the company raised full year revenue growth guidance despite a drop in net income.
The company now expects 2026 revenue growth in the mid teens, with management indicating a target above €36b. This update followed half year 2026 sales of €17,245m and revenue of €17,458m.
See our latest analysis for Safran.
Safran’s raised 2026 guidance sits against a share price of €356.4 and a 90 day share price return of 20.12%, while the 5 year total shareholder return of 240.98% points to strong long term momentum.
If Safran’s update has you thinking about where else growth stories might emerge in critical infrastructure, this is a useful moment to scan 36 power grid technology and infrastructure stocks
After Safran’s guidance lift and recent share price run, the choice is between paying up for the story today or waiting for a pullback. To judge that trade off, the next step is the valuation.
Most Popular Narrative: 3.2% Undervalued
Safran’s most followed valuation narrative puts fair value at €368.29, slightly above the last close of €356.4. This frames the current debate around upside versus execution risk.
The company is experiencing strong momentum in global air travel, particularly narrowbody engine demand (for example, from Ryanair's LEAP-1B order and increased shop visits), supported by the sustained expansion of middle-class travelers in emerging markets. This underpins recurring aftermarket revenue growth and supports a higher long-term revenue base.
Curious what sits behind that fair value for Safran. The narrative leans on compound revenue growth, higher margins, and a future earnings multiple that needs to hold up. The mix of civil aerospace, defense and sustainable propulsion all feed into those projections. The full story is in how those moving parts are modelled together.
Result: Fair Value of €368.29 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Safran’s story can shift quickly if supply chain bottlenecks hit LEAP engine output, or if key customers like Airbus, Boeing or major airlines change course.
Find out about the key risks to this Safran narrative.
Another View on Safran’s Valuation
The fair value narrative for Safran points to a small 3.2% gap between price and the €368.29 estimate. On earnings multiples, the picture looks less relaxed. The current P/E of 38.1x sits well above the 34.9x European Aerospace & Defense average and the 32.5x fair ratio. That richer rating can reward you if growth and margins track the story, but it also leaves less room for disappointment. Which signal do you put more weight on: the slight fair value discount or the richer earnings tag?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With mixed signals on Safran’s valuation and momentum, it helps to look past the headline numbers and test the assumptions yourself. If you want to see why some investors are optimistic about the company’s potential rewards, start by reviewing the 2 key rewards
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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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