Vivendi (ENXTPA:VIV) Reports Stronger Revenue Growth, Is The 25% Undervaluation Case Convincing?
Vivendi (ENXTPA:VIV) has put fresh numbers on the table, reporting unaudited third quarter revenue of €77 million, up 13.8% year on year, with nine month sales reaching €217 million, up 2.1%.
Vivendi’s recent trading update comes against a mixed share price backdrop, with a 1-month share price return of 6.86% and a 7-day gain of 4.34% sitting alongside a year to date share price decline of 32.45% and a 1-year total shareholder return that is down 48.99%. This suggests short term momentum has picked up while longer term performance remains weak.
See how Vivendi's rebound compares with other media and entertainment players by reviewing it alongside our hand picked 191 high quality undervalued stocks
Short term price gains on Vivendi arrived just as quarterly revenue momentum improved. Does that reflect a real reset in how the business is valued, or a quick swing in sentiment that the numbers cannot fully support?
Most Popular Narrative: 25% Undervalued
On the most followed narrative, Vivendi's fair value sits at €2.12 against a last close of €1.59, which points to a discount investors are still wrestling with as they weigh restructuring, profitability and balance sheet pressure.
Vivendi's ongoing transformation and restructuring, including the spin-off of major assets, are expected to unlock value for stakeholders and could lead to future revenue and earnings growth as the company focuses more dynamically on its portfolio of listed investments.
See why 11 investors see Vivendi as 25% undervalued.
Result: Fair Value of €2.12 (UNDERVALUED)
Still, the recent €6.004b net loss and ongoing negative EBITDA leave Vivendi exposed if cost cuts, disposals or Gameloft’s revenue plan encounter setbacks.
Find out about the key risks to this Vivendi narrative.
Another View On Vivendi’s Valuation
The analyst narrative leans on future earnings and a fair value of €2.12, yet today Vivendi trades on a P/E of 98.9x. That is far above the European Entertainment average of 13.2x and above the fair ratio of 35.8x that the market could move towards. For you, that gap raises a simple question. Is this a mispriced opportunity or just valuation risk waiting to be repriced?
To see how those P/E gaps stack up in practice, including how they compare with peers and the fair ratio the market could move toward, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Does this mix of pressure and potential around Vivendi feel balanced to you, or skewed one way? Act quickly, review the full picture, and weigh both sides with 2 key rewards and 3 important warning signs
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