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Safran SA
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=== Trading Comparables (Comps) === As mentioned earlier, the negative income and EBITDA figures make it impractical to use the P/E or EV/EBITDA ratios in this case. Different valuation approaches and more comprehensive analyses are needed to accurately assess the company's financial health and potential. For that matter we decided to use the Price-to-Book (PB) ratio, we collected the PB ratio for similar companies operting in the aerospace and defense sector. Rolls-Royce having a negative PB ratio, we left it out of our analysis. {| class="wikitable" !Company Name !PB ratio |- |Airbus SE (EPA: AIR) |7.32 |- |Thales Group (EPA: HO) |3.86 |- |<s>Rolls-Royce Holdings plc (LSE: RR.)</s> |<s>-2.75</s> |- |General Electric Company (NYSE: GE) |3.8 |- !Average |4.99 |- !Median |'''3.86''' |} We can then deduce the price per share using the median PB ratio. {| class="wikitable" ! colspan="6" |Calculating the price based on PB ratio |- |Price |Shares Outstanding |Book value |Total assets |Intangible assets |Total liabilities |- |'''101.87 β¬''' |426,500,000 |11,256,000,000.00 β¬ |46,828,000,000.00 β¬ |8,096,000,000.00 β¬ |27,476,000,000.00 β¬ |} Based on this straightforward analysis, it becomes evident that the company is deemed overvalued, given its current market value per share of 144.82β¬ in contrast to the value of 101.87β¬ calculated through our analysis. However, if we solely rely on the Airbus PB (Price-to-Book) ratio, the estimated price per share would be 193.19 β¬, indicating an even higher level of overvaluation in this instance. This demonstrates the limited usefulness of the Comps analysis in accurately determining the company's true value and highlights the need for incorporating multiple valuation metrics and methodologies to gain a more comprehensive understanding of its market worth.
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