Pierre Et Vacances (ENXTPA:VAC) Valuation Check As Recent Share Performance Draws Attention

Event driven snapshot for Pierre et Vacances

Pierre et Vacances (ENXTPA:VAC) continues to attract attention after recent share price moves, with the stock showing mixed short term returns and stronger performance over the past year and past 3 months.

See our latest analysis for Pierre et Vacances.

The latest share price of €1.854 comes after a small 1 day share price return decline, but the 90 day share price return of 11.96% and 1 year total shareholder return of 23.93% suggest momentum has been building rather than fading.

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With the shares at €1.854 and both an analyst price target and an intrinsic estimate pointing higher, the key question is simple: is Pierre et Vacances still undervalued, or is the market already pricing in future growth?

Price-to-Earnings of 25.6x: Is it justified?

On a P/E of 25.6x at a €1.854 share price, Pierre et Vacances screens as expensive compared with several reference points, even though other metrics flag a discount to fair value.

The P/E ratio compares what you pay today per share to the company’s current earnings per share. It is a quick way to see how much the market is paying for each euro of profit in the hospitality space.

For Pierre et Vacances, the current P/E of 25.6x sits above the estimated fair P/E of 22.9x, and above both the European hospitality average of 16.7x and the peer average of 22.8x. That suggests the market is attaching a richer price tag to its earnings than these benchmarks, even though separate analysis indicates the shares are trading at a 20.4% discount to an estimated fair value of €2.33 based on the SWS DCF model.

Against its industry and peer group, this is a clear premium, not a slight one. This puts the onus on future earnings to keep justifying that higher multiple over time.

Explore the SWS fair ratio for Pierre et Vacances

Result: Price-to-Earnings of 25.6x (OVERVALUED)

However, the relatively high P/E and a 39.7% 5 year total return loss mean that any disappointment in revenue or net income growth could hit sentiment quickly.

Find out about the key risks to this Pierre et Vacances narrative.

Another view: DCF points in the opposite direction

While the 25.6x P/E suggests Pierre et Vacances is priced richly against its fair ratio of 22.9x and hospitality peers, the SWS DCF model points the other way. With an estimated fair value of €2.33, the shares at €1.854 screen as 20.4% undervalued. Which signal do you trust more?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pierre et Vacances for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Pierre et Vacances Narrative

If you prefer to weigh the numbers yourself or see the story differently, you can build a fresh view in just a few minutes, starting with Do it your way.

A great starting point for your Pierre et Vacances research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

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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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