Is Bolloré SE (EPA: BOL) potentially undervalued?

Let’s talk about the popular Bolloré SE (EPA: BOL). The company’s shares have seen decent teen-level share price growth on ENXTPA over the past few months. With many analysts covering large cap stocks, we can expect any price sensitive announcement to have already factored into the share price. But what if there is still an opportunity to buy? Let’s take a look at Bolloré’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Discover our latest analysis for Bolloré

Is Bolloré still cheap?

Good news, investors! Bolloré is still a good deal at the moment under my multiple pricing model, which compares the company’s price-to-earnings ratio to the industry average. In this case, I used the price-to-earnings (PE) ratio since there isn’t enough information to reliably forecast the stock’s cash flow. I find Bolloré’s ratio of 33.19x to be lower than its peer average of 45.45x, indicating that the stock is trading at a lower price than the entertainment industry. The Bolloré share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you think the stock price should eventually hit its industry peers, a low beta might suggest it’s unlikely to do so quickly anytime soon, and once it’s there it may. be difficult to fall back into an attractive purchase range.

What does Bolloré’s future look like?

ENXTPA: BOL Earnings and Revenue Growth August 9, 2021

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. With earnings expected to grow by 46% over the next two years, the future looks bright for Bolloré. It looks like a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What this means for you:

Are you a shareholder? Given that BOL is currently trading below the industry PE ratio, this might be a great time to increase your holdings of stocks. With optimistic earnings prospects on the horizon, it appears that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to take into account, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping your eye on BOL for a while, now might be the time to take a leap. Its prospects for prosperous future earnings are not yet fully reflected in the current share price, which means it is not too late to buy BOL. But before making any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Keep in mind that when it comes to analyzing a stock, it is worth noting the risks involved. During our analysis, we found that Bolloré has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in Bolloré, you can use our free platform to view our list of over 50 other stocks with high growth potential.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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