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    Is SES (ENXTPA:SESG) Cheap As 2026 Guidance Holds And Revenue Outlook Improves?

    Simply Wall St·08/03/2026 03:33:29
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    SES (ENXTPA:SESG) has been in focus after the company reaffirmed its 2026 earnings guidance, indicating stable revenue for the year and outlining expectations for a stronger revenue profile in the second half.

    See our latest analysis for SES.

    Even with SES reaffirming its 2026 guidance and securing wins such as the LATAM Airlines inflight connectivity contract and progress on U.S. C-band incentives, the stock has seen the share price fall 27.06% over the past 30 days and 18.14% over 90 days, while longer term total shareholder returns of 8.85% over three years and 21.85% over five years point to more supportive momentum over time.

    If this mix of near term volatility and longer term resilience has your attention, it could be a good moment to look beyond SES and check out 35 power grid technology and infrastructure stocks

    SES now trades well below both analyst targets and some intrinsic value estimates after the recent slide. Is the fair value closer to where the stock sits today or nearer to that higher valuation band?

    Most Popular Narrative: 30.2% Undervalued

    The most followed SES valuation narrative puts fair value at €8.25, comfortably above the last close at €5.76, and builds that gap on detailed assumptions about contracts, margins and capital spending.

    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.

    Read the complete narrative.

    Want to see what sits behind that valuation gap for SES? The narrative leans on specific revenue mix changes, margin repair and a future earnings multiple that is far from conservative.

    Result: Fair Value of €8.25 (UNDERVALUED)

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

    However, SES could challenge this undervaluation story if planned Intelsat synergies strengthen cash generation or if long dated Media and government contracts support steadier overall margins.

    Find out about the key risks to this SES narrative.

    Another View on SES Valuation

    The Simply Wall St DCF model paints a very different picture for SES. With the share price at €5.76 and an estimated future cash flow value of €24.79, SES screens as heavily undervalued. If both this and the €8.25 narrative fair value are on the table, which one do you trust?

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

    SESG Discounted Cash Flow as at Aug 2026
    SESG Discounted Cash Flow as at Aug 2026

    Next Steps

    With such a split between potential risks and rewards around SES, it makes sense to move quickly and test the numbers yourself against your own expectations. To see both sides laid out clearly, review the 2 key rewards and 3 important warning signs

    Looking for more investment ideas beyond SES?

    SES may be front of mind today, but the next opportunity could sit in a completely different corner of the market. You can broaden your watchlist with focused ideas from the Simply Wall St screener.

    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.