Wondering if Legrand is a hidden gem or overpriced right now? You are not alone, especially with so many investors eyeing its fair value after the latest market swings.
The stock has had an exciting run. After rising 38.6% year-to-date and doubling over the last five years, it recently dropped by 13.1% in just the past week.
Recent headlines have centered on Legrand’s strategic acquisitions in the smart home sector and increased focus on sustainability, which grabbed attention from both growth-focused and ESG investors. This news seems to have influenced the latest price moves, with some market watchers reassessing both the company’s growth runway and risk profile.
According to our thorough valuation checks, Legrand scores 0 out of 6 for being undervalued, suggesting it may not be a bargain based on those methods. Next, we will look beyond the numbers and explore which valuation approaches make the most sense right now. We will also introduce an even better way to cut through the noise at the end.
Legrand scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model estimates a company’s value by forecasting its future cash flows and then discounting those projections back to today. This approach tries to gauge what the company is really worth based on the money it is expected to generate in the coming years.
For Legrand, the current Free Cash Flow stands at around €1.39 billion. Analyst estimates project this figure will continue to grow, reaching approximately €1.61 billion by 2027. Beyond that, Simply Wall St extrapolates further growth, with forecasts suggesting Legrand’s Free Cash Flow could rise to about €2.06 billion by 2035, based on a combination of analyst projections and modest long-term growth assumptions.
After running these numbers through the DCF model, Legrand’s estimated intrinsic value comes out to €90.07 per share. However, the market is currently pricing the stock roughly 44.2% higher than the calculated intrinsic value, which signals the stock may be overvalued according to this method.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Legrand may be overvalued by 44.2%. Discover 870 undervalued stocks or create your own screener to find better value opportunities.
LR Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Legrand.
For profitable companies like Legrand, the Price-to-Earnings (PE) ratio is a widely respected method to gauge whether a stock is attractively priced. The PE ratio helps investors assess how much they are paying for each euro of current earnings, which is especially useful when a company has a consistent track record of generating profits.
It is important to note that growth expectations and risk play a major role in what is considered a “normal” or fair PE ratio. Companies expected to grow faster, or those with more stable earnings, often command higher multiples because investors anticipate better returns or lower risk in the future.
Currently, Legrand trades at a PE ratio of 27.8x. Compared to the peer group average of 16.3x and the industry average of 31.5x, Legrand sits between its direct peers and the broader industry. Instead of relying solely on these benchmarks, Simply Wall St provides a proprietary “Fair Ratio” (in this case, 24.76x), which incorporates Legrand’s expected earnings growth, profitability, size, industry sector and specific risk factors.
The Fair Ratio goes deeper than raw comparisons by considering factors that truly influence long-term investor returns. This makes it a more balanced reference point for whether the market price actually makes sense given Legrand’s unique fundamentals.
Comparing Legrand’s current PE of 27.8x to its Fair Ratio of 24.76x, the stock appears somewhat overvalued based on this approach.
Result: OVERVALUED
ENXTPA:LR PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1396 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is simply your investment story: your perspective and reasoning about a company’s future, captured in numbers such as your own fair value, revenue forecasts, and profit margin assumptions.
Unlike static ratios or models, Narratives connect the big-picture story you believe about Legrand with a financial forecast, and from there to an estimate of fair value. On Simply Wall St’s platform, used by millions of investors, you can create and share Narratives right within the Community page. This approach is easy and accessible for everyone.
Narratives help you decide confidently when to buy or sell, as you can instantly see if your fair value suggests the stock is cheap or expensive relative to today’s price. They dynamically update when new information arrives, such as earnings or news, so your analysis always reflects the latest developments.
For example, some investors see Legrand’s expanding presence in high-growth data centers and strong margin outlook and might set a bullish fair value like €165. Others focus on core building market risks and potential margin pressure, leading to a more cautious target near €82.
Do you think there’s more to the story for Legrand? Head over to our Community to see what others are saying!
ENXTPA:LR Community Fair Values as at Nov 2025
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.
Companies discussed in this article include LR.PA.
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