Valeo FR.PA
FranceConsumer Cyclical · Auto PartsEuronext París · EUR
14.54 EUR (+0.3%)
14 analysts
Trading 2120.00 €Open account ↗
XTB0.00 €affiliateOpen account ↗
eToro0.86 €Open account ↗XTB0.00 €★ featured · affiliateOpen account ↗Trading 2120.00 €Open account ↗eToro0.86 €Open account ↗XTB0.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Valeo is a French automotive parts manufacturer (lighting systems, electronics, thermal and propulsion systems) that supplies the world's major vehicle manufacturers.
Listed on Euronext París · Symbol FR.PA · EPA: FR · Currency EUR
Key points
from its scores- ✓Good share-price trend9.3
- ✓Attractive valuation8.5
- ✓Attractive dividend7.5
- ✕Weak growth3.6
- ✕Unfavourable risk and backdrop3.6
AI analysis
bottom line, main risk, context and newsThe valuation is very attractive and momentum is strong, but weak growth and rate pressure on its tight balance sheet warrant caution until vehicle demand improves.
Valeo trades at a very attractive valuation (forward P/E 7.42, EV/EBITDA 3.71, FCF yield 16.84%) and has strong momentum (9.26), but its financial health is mediocre (debt 1.76x EBITDA, liquidity 0.87) and growth is weak (revenue -2.60%), in a rising-rate environment in Europe that pressures its operating margin of 4.82%.
The main risk is weak vehicle demand in Europe and the transition to electric mobility, which compresses its operating margin (4.82%) and limits growth, in a rising-rate environment that makes its debt (1.76x EBITDA) more expensive.
Context and risks
Valeo is an automotive parts manufacturer with net debt of 1.76x EBITDA and an operating margin of 4.82%, exposing it to a rising-rate environment in Europe (the ECB raised rates in June and the market prices another hike in September). Weak vehicle demand and the transition to electric mobility pressure its cost structure, although its valuation already discounts part of this scenario.
Is Valeo stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 34% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 17.7 | 17.8 | −1% |
| EV / EBITDA | 3.7 | 11.2 | −67% |
| Price / book | 1.0 | 2.9 | −64% |
| Price / sales | 0.2 | 1.3 | −86% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 14.54 EUR, +0.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.5 (sector 5.7), Growth 3.6 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 17.7
- Forward P/E
- 7.4
- EV / EBITDA
- 3.7
- Price / book
- 1.0
- Price / sales
- 0.2
- PEG
- 0.18
- Market cap
- 3.5B EUR
- Enterprise value
- 8.1B EUR
Profitability
- ROE
- 6.6%
- ROA
- 3.7%
- ROIC (approx.)
- 9.7%
- Gross margin
- 20.8%
- Operating margin
- 4.8%
- Net margin
- 1.0%
- Free cash flow
- 589.5M EUR
- FCF yield
- 16.8%
- Cash conversion
- 27%
Solvency
- Total debt
- 6.9B EUR
- Net debt
- 3.8B EUR
- Cash
- 3.0B EUR
- EBITDA
- 2.2B EUR
- Net debt / EBITDA
- 1.76
- Debt / equity
- 165.28
- Current ratio
- 0.87
- Quick ratio
- 0.62
Growth
- Revenue growth
- −2.6%
- Earnings growth
- +1.2%
- EPS (TTM)
- 0.82 EUR
- EPS (forward)
- 1.95 EUR
Dividend
- Dividend yield
- 3.0%
- Payout
- 53.7%
Risk and market
- Beta
- 1.30
- Analyst consensus
- Buy (14)
- Target price
- 14.54 EUR
- 52-week range
- 9.44 – 17.32
Recent news
All FR.PA news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Valeo
Is Valeo stock cheap or expensive?
On P/E and EV / EBITDA, it trades 34% below the Consumer Cyclical median on average. Valuation score: 8.5 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 14.54 EUR, +0.3% versus the price. This is not investment advice.
What score does Valeo get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,242 of 2,130 (better than 39% of the companies analysed). Its strongest category is Momentum (9.3) and its weakest, Growth (3.6). Analysis of 08/10/2026.
What is Valeo's P/E ratio?
Its P/E is 17.7: the share price equals 17.7 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 7.4.
How much is Valeo worth on the stock market?
Its market capitalisation is 3.5B EUR and its enterprise value, debt included, is 8.1B EUR.
How much debt does Valeo have?
Its net debt (debt minus cash) is 3.8B EUR. That is 1.76 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Valeo pay a dividend?
Yes: its dividend yield is 3.04% and it pays out 54% of its earnings.
How has Valeo stock performed over the last year?
It has risen 51.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 9.44 and 17.32 EUR. Past performance does not guarantee future results.
What do analysts think of Valeo?
14 analysts cover it; their average recommendation is “Buy” and their average target is 14.54 EUR (+0.3% versus the price). It is an estimate, not market data.