SES (ENXTPA:SESG) Could Be 55% Below Fair Value As Defense Contract Momentum Builds

SES (ENXTPA:SESG) is back in focus after Lyntris, a SES Space & Defense company, was chosen by Intelsat General Communications as prime payload integrator for the U.S. Space Force's Protected Tactical Satellite Communications Global program.

Despite the PTS-G contract spotlight and recent debt tender activity, SES shares have been under pressure. The 30-day share price return is down 21.69%, and the 1-year total shareholder return has declined 38.21%, suggesting recent enthusiasm has not yet reversed the longer slide.

Scan for other satellite and communication stocks that are showing similar defense contract momentum. You can start with the hand picked 43 power grid technology and infrastructure stocks.

SES trades at a steep discount to analyst targets after a sharp slide, raising a simple tension. Is this caution about the satellite group’s risks sensible, or has pessimism gone too far?

Most Popular Narrative: 55% Undervalued

Against a last close of €3.70, the most widely followed narrative for SES pegs fair value at €8.25 using an 8.71% discount rate. This frames today’s weakness as a steep gap to that estimate.

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. This can constrain free cash flow and slow any improvement in earnings and leverage.

See why 4 investors see SES as 55% undervalued.

Result: Fair Value of €8.25 (UNDERVALUED)

Still, the SES narrative can break if heavy 2026 CapEx fails to translate into higher value contracts, or if Media and Fixed Data weakness proves more persistent than expected.

Find out about the key risks to this SES narrative.

Next Steps

Sentiment around SES is clearly mixed, with pressure on the share price set against a punchy undervaluation argument and evolving contract wins. To get past the headlines and form your own view quickly, weigh both the potential upside and the weak spots flagged in the 2 key rewards 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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