Eutelsat’s shares have rocketed in value over the past 30 days (up 32 per cent to €3.93) although when compared to 6 months ago (€4.50) they still have a way to go. Indeed, when looking at the longer trading picture and at a snapshot of 2022 when they traded at between €10 and €13 it is fair say that they have lost 53 per cent of their once value.

This powerful upward move was spurred by a fresh analysts report indicating the company’s shares are trading at a substantial discount, nearly 85 percent below their calculated fair value. According to a Discounted Cash Flow (DCF) analysis conducted by Simply Wall St, Eutelsat’s equity is priced at a staggering 84.9 per cent discount to its intrinsic value, says the report. The revelation of this significant valuation gap acted as a powerful catalyst, immediately drawing investment from both institutional players and private investors seeking undervalued opportunities.

Nevertheless, an improvement is long overdue. Private investors have by and large long since bailed out of the stock which is now held by a couple of French government-backed institutions, Bharti of India, the UK government, logistics and shipping firm CMA CGM.

Earlier in October, Eutelsat shareholders approved a capital raise of approximately €1.5 billion to reduce debt and fund its satellite constellation ambitions. The funding comprises €828 million in direct capital and €672 million from a rights issue, which allowed existing shareholders to buy new shares at a discounted price.

This move solidified the French government’s position as the largest shareholder and increased its influence within the company, according to sources.

Eutelsat will unveil its latest quarterly numbers on October 21st.

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Categories: Blogs, Business, Inside Satellite, Satellite

Tags: Bharti, eutelsat