SES (ENXTPA:SESG) Could Be 43% Undervalued Following The SES CORE Launch
SES (ENXTPA:SESG) has rolled out SES CORE, a content orchestration and hybrid delivery platform that allows broadcasters to route and supervise video over satellite, fiber, and IP through a single interface.
The launch of SES CORE lands at a time when SES’s recent 1 day share price return of 2.69% comes after a tougher spell, with the 30 day share price return down 12.67% and the 90 day move down 42.52%. The 1 year total shareholder return is down 16.71%, pointing to pressure that product news like this will be judged against as investors weigh whether sentiment is starting to improve or simply stabilising after a sharp reset.
Spot opportunities beyond SES by scanning a curated group of media and connectivity players in our 618 high quality undiscovered gems.Bulls see SES’s recent product launches as outpacing the share slide, while bears focus on losses and a prolonged drawdown. Which side does the current valuation evidence support next?
Most Popular Narrative: 42.5% Undervalued
Against SES’s last close of €4.74, the most followed valuation story points to a fair value of €8.25, framing SES CORE within a much bigger cash flow debate.
The long-term shift toward software defined multi orbit constellations requires heavy upfront investment. Projects like O3b mPOWER and meoSphere, together with IRIS2 commitments, are front loading 2026 CapEx to around €700 million, which can constrain free cash flow and slow any improvement in earnings and leverage.
Want to understand why a business spending heavily today is still modelled at a materially higher value per share? The narrative hinges on how future contracts, margin repair and capital discipline interact with those cash demands. The surprise sits in how earnings, revenue and profit share are expected to evolve once that investment phase rolls through.
Result: Fair Value of €8.25 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
Still, SES faces two clear swing factors: execution on €210 million of Intelsat synergies and the capacity to keep Media and Fixed Data pressure from eroding cash generation.
Find out about the key risks to this SES narrative.
Next Steps
Sentiment around SES feels finely balanced, with pressure and optimism both clear in the numbers. Move quickly, pull up the data and pressure test the key drivers yourself with the 1 key reward and 3 important warning signs.
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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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