<div id="readability-page-1"><div><ul> <li>If you are wondering whether Compagnie Générale des Établissements Michelin Société en commandite par actions is priced attractively right now, it helps to start by separating short term share moves from longer term underlying value.</li> <li>The stock last closed at €31.15, with returns of 7.5% over the past 30 days, 8.7% year to date and 0.8% over the past year, as well as 21.5% over 3 years and 23.1% over 5 years.</li> <li>Recent coverage has focused on how Michelin is positioned within the Auto Components sector, including attention on its role as a major tyre manufacturer, its global footprint and its exposure to different end markets such as passenger vehicles, trucks and specialty segments. This context helps frame how investors are treating the balance between growth potential and risks when they reassess the share price.</li> <li>On Simply Wall St's valuation checklist, Michelin currently has a value score of 3 out of 6, which raises some useful questions about how standard valuation models line up and what an even broader view of value can show later in this article.</li> </ul> Find out why Compagnie Générale des Établissements Michelin Société en commandite par actions's 0.8% return over the last year is lagging behind its peers. <h3>Approach 1: Compagnie Générale des Établissements Michelin Société en commandite par actions Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and discounting them back to today using an appropriate rate. It is essentially asking what the future stream of cash is worth in today’s money. For Compagnie Générale des Établissements Michelin Société en commandite par actions, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about €1.78b. Analyst projections and Simply Wall St extrapolations suggest free cash flow between 2026 and 2035 stays in the billion euro range, reaching an estimated €3.17b in 2030 before further extrapolated figures. When these projected cash flows are discounted back, the model arrives at an estimated intrinsic value of €70.61 per share. Compared with the recent share price of €31.15, this implies the shares trade at a 55.9% discount to the DCF estimate, which indicates that the stock appears significantly undervalued on this metric. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Compagnie Générale des Établissements Michelin Société en commandite par actions is undervalued by 55.9%. Track this in your watchlist or portfolio, or discover 236 more high quality undervalued stocks. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTMw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/dcf/query-ZGF0ZT0yMDI2LTA0LTMw"/><figcaption>ML Discounted Cash Flow as at Apr 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Compagnie Générale des Établissements Michelin Société en commandite par actions. <h3>Approach 2: Compagnie Générale des Établissements Michelin Société en commandite par actions Price vs Earnings</h3> For profitable companies, the P/E ratio is a straightforward way to relate what you pay for each share to the earnings that support it. It captures how the market prices the business relative to its profits, which is often a core anchor for long term investors. What counts as a &#34;normal&#34; or &#34;fair&#34; P/E depends on expectations for earnings growth and the risks around those earnings. Higher growth and lower perceived risk can justify a higher multiple, while slower growth or higher risk usually point to a lower one. Compagnie Générale des Établissements Michelin Société en commandite par actions currently trades on a P/E of 12.82x. This sits below the Auto Components industry average P/E of 19.59x and close to the peer group average of 12.30x. Simply Wall St also provides a proprietary “Fair Ratio” of 11.93x, which is the P/E that would be expected given factors such as the company’s earnings profile, margins, industry, market cap and identified risks. The Fair Ratio is more tailored than a simple comparison with peers or the broad industry, because it adjusts for company specific characteristics rather than assuming all firms deserve the same multiple. Set against this Fair Ratio, the current P/E of 12.82x is moderately higher, which suggests the shares look overvalued on this metric. Result: OVERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTMw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTMw"/><figcaption>ENXTPA:ML P/E Ratio as at Apr 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 97 top founder-led companies. <h2>Upgrade Your Decision Making: Choose your Compagnie Générale des Établissements Michelin Société en commandite par actions Narrative</h2> Earlier it was mentioned that there is an even better way to understand valuation, so Narratives bring this to life by letting you set a clear story for Compagnie Générale des Établissements Michelin Société en commandite par actions, link that story to specific assumptions for future revenue, earnings and margins, and then see the Fair Value that drops out of those numbers. On Simply Wall St's Community page, Narratives are an easy tool that many investors already use, because each one connects a company story to a forecast and then to a Fair Value that can be compared directly with the current share price to help you judge whether the stock looks cheap or expensive against your own expectations. For Michelin, one investor might build a more optimistic Narrative that lines up with a Fair Value around €40.0, while another might prefer a more cautious Narrative closer to €25.15. As new earnings, news or analyst estimates are added on the platform, those Narratives and their Fair Values update automatically so your view stays aligned with the latest information. For Compagnie Générale des Établissements Michelin Société en commandite par actions, however, we will make it really easy for you with previews of two leading Compagnie Générale des Établissements Michelin Société en commandite par actions Narratives: 🐂 Compagnie Générale des Établissements Michelin Société en commandite par actions Bull Case Fair Value in this bullish Narrative: €40.00 Implied discount to this Fair Value vs the last close: 22.1% Assumed annual revenue growth: 5.6% <ul> <li>Focus is on higher margin services, sustainability leadership and stronger ties with electric vehicle manufacturers, which are assumed to support earnings quality and pricing power over time.</li> <li>Analysts in this camp work with revenue of €30.6b and earnings of €3.1b by 2029, paired with a P/E of 10.6x and an assumed discount rate of 8.4%.</li> <li>This view leans on a solid balance sheet, sizeable free cash flow and optionality in areas such as composites and industrial solutions to support a Fair Value of €40.00.</li> </ul> 🐻 Compagnie Générale des Établissements Michelin Société en commandite par actions Bear Case Fair Value in this bearish Narrative: €25.15 Implied premium to this Fair Value vs the last close: 23.9% Assumed annual revenue growth: 1.4% <ul> <li>This view highlights pressure from new mobility models, electric vehicles, lower cost competitors and regulatory costs that could limit volume growth and pricing power.</li> <li>It uses revenue of €27.1b and earnings of €2.1b by 2029, alongside a P/E of 9.8x and a discount rate of 8.4%, to support a Fair Value of €25.15.</li> <li>Even though it acknowledges efforts in premium products, specialty segments and cash returns, it still treats the current share price as rich relative to these more cautious assumptions.</li> </ul> If you want to see how other investors are weighing up these stories and where your own view fits, See what the community is saying about Compagnie Générale des Établissements Michelin Société en commandite par actions. Do you think there's more to the story for Compagnie Générale des Établissements Michelin Société en commandite par actions? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTMw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2ae1ad67-fdf8-49fc-8f7a-c3b4c08b237b/chart/quote-price/query-ZGF0ZT0yMDI2LTA0LTMw"/><figcaption>ENXTPA:ML 1-Year Stock Price Chart</figcaption></figure> 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.<div><h3>New: AI Stock Screener &amp; Alerts</h3>Our new AI Stock Screener scans the market every day to uncover opportunities.<div>• Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI CompaniesOr build your own from over 50 metrics.</div>Explore Now for Free</div></div></div>

MGDDY

Michelin's stock closed at €31.15, showing a 0.8% return over the past year and a 55.9% discount to its estimated intrinsic value of €70.61 per share based on a Discounted Cash Flow analysis, indicating it is undervalued. However, its P/E ratio of 12.82x is above the Fair Ratio of 11.93x, suggesting it may be overvalued compared to its earnings profile. Investors are weighing growth potential against risks in the Auto Components sector as they reassess the share price.

Is Michelin (ENXTPA:ML) Offering Value After Recent Share Price Gains?