Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Veolia Environnement (ENXTPA:VIE) is back in focus after reporting 2025 earnings above its own guidance, along with higher EBITDA margins, a proposed dividend increase, ambitious 2026 targets, and sizable new contracts in India and the UK.
See our latest analysis for Veolia Environnement.
The latest earnings beat, dividend proposal and long term water and waste contracts seem to have coincided with stronger momentum, with a 1 month share price return of 14.49% and a 1 year total shareholder return of 30.78% building on a 5 year total shareholder return of 100.33% at a share price of €35.96.
If Veolia’s contract wins and steady returns have you considering where else to put cash to work, take a look at 23 power grid technology and infrastructure stocks as another angle on essential infrastructure opportunities.
With Veolia now trading close to analyst targets yet still showing a sizeable modelled intrinsic discount, the real question is whether recent wins and guidance leave upside on the table or if the market is already pricing in future growth.
Veolia’s most followed narrative puts fair value at €36.22, almost in line with the current €35.96 share price, yet still describes a substantial valuation gap.
Record bookings and a healthy sales pipeline in technology driven, higher value service areas (e.g., PFAS treatment, resource recovery, digital water solutions) are positioning Veolia to benefit disproportionately from stricter environmental regulation and technological adoption in the sector, and this is likely to accelerate EPS growth and improve Veolia’s return on capital employed.
Curious what underpins that gap between price and fair value, and how much of it rests on revenue growth, margin shifts, and future earnings multiples? The full narrative lays out those moving parts in detail, including how tighter environmental rules and higher value contracts are built into the long term cash flow and discount rate assumptions behind that €36.22 figure.
Result: Fair Value of €36.22 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, you also need to weigh risks such as tougher integration of recent acquisitions and flat tariffs in key French water operations, which could pressure margins and cash generation.
Find out about the key risks to this Veolia Environnement narrative.
While our fair value model suggests Veolia is 38% below estimated future cash flow value, the current P/E of 19.7x sits slightly above the global integrated utilities average of 19.1x and just above its own 19.3x fair ratio. This raises a simple question: is this a margin of safety, or a valuation already running hot?
