Assessing Dassault Aviation (ENXTPA:AM) Valuation Following Strong 1-Year Share Price Performance

Dassault Aviation société anonyme (ENXTPA:AM) has delivered some eye-catching returns over the past year, with shares rising 48% and gains fueled by strong revenue and profit growth. Investors may be wondering what is driving this momentum and how sustainable it could be.

See our latest analysis for Dassault Aviation société anonyme.

Dassault Aviation société anonyme's 1-year total shareholder return of nearly 48% shows real momentum, with this upswing building on strength in both revenue and net income growth. While recent share price moves have been a bit choppy, long-term holders have been handsomely rewarded, especially with an impressive 324% five-year total return.

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With shares up nearly 50% in a year, the big question is whether Dassault Aviation société anonyme is still trading below its true value or if the market has already factored in all of its future growth potential.

Most Popular Narrative: 13.4% Undervalued

With Dassault Aviation société anonyme’s most popular narrative setting fair value at €324.07, the valuation stands well above the recent closing price of €280.60, hinting at potential upside. The following perspective captures the future growth engine driving this stance.

The robust international demand for the Rafale, highlighted by major new contracts with India (including the first Rafale Marine export order) and the UAE, ongoing negotiations for additional aircraft with Indonesia, and active Make in India transfer initiatives, provides exceptional multi-year revenue visibility and demonstrates Dassault's ability to capitalize on the trend toward higher global defense spending, particularly among NATO and partner nations. This growing backlog should drive forward revenue growth and enhance long-term earnings stability.

Read the complete narrative.

Curious about the bold assumptions behind this price target? Find out which revenue forecasts and margin projections analysts are betting on for the next phase of Dassault’s growth. Only the full narrative reveals how these figures shape such an assertive valuation outlook.

Result: Fair Value of €324.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent supply chain disruptions or stalled international collaborations could undermine Dassault’s growth trajectory and threaten future margin improvements.

Find out about the key risks to this Dassault Aviation société anonyme narrative.

Story Continues

Build Your Own Dassault Aviation société anonyme Narrative

Whether you prefer a different perspective or want to dig into the numbers firsthand, you can quickly craft your own narrative to see how your view stacks up. Do it your way

A great starting point for your Dassault Aviation société anonyme research is our analysis highlighting 3 key rewards and 1 important warning sign 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.

Companies discussed in this article include AM.PA.

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