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• At the recent Innovation Summit North America, Schneider Electric revealed multiple high-value collaborations, including a US$1.9 billion supply capacity agreement with Switch, a US$373 million deal with Digital Realty, and a global supply chain decarbonization programme with Marks & Spencer, supporting sectors such as AI data centers, utilities, and retail sustainability.

• These partnerships highlight Schneider Electric’s central role in driving resilient, scalable energy infrastructure and advancing digital and environmental innovation across several industries worldwide.

• We’ll consider how Schneider Electric’s landmark data center agreements may strengthen its position within the evolving digital infrastructure market.

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Schneider Electric investors are buying into a vision centered on accelerating demand for digital infrastructure, electrification, and energy efficiency solutions worldwide. The recent US$1.9 billion and US$373 million data center agreements with Switch and Digital Realty meaningfully reinforce near-term catalysts tied to the AI-driven data center buildout, which remains a key growth engine; however, these deals do not materially reduce exposure to ongoing margin pressure from negative product mix, particularly as heavy investments ramp up to capture future demand.

Among the latest announcements, the large-scale Supply Capacity Agreement with Switch is particularly relevant, as it demonstrates Schneider Electric’s ability to capture a greater share of the rapidly expanding AI and hyperscale data center market, directly supporting the company’s multi-year growth pipeline in this sector.

In contrast, investors should be aware of ongoing risks around margin compression, particularly if growth in lower-margin Systems outpaces more profitable Product lines and leads to…

Read the full narrative on Schneider Electric (it’s free!)

Schneider Electric’s narrative projects €48.6 billion in revenue and €6.7 billion in earnings by 2028. This requires 7.3% yearly revenue growth and a €2.4 billion increase in earnings from €4.3 billion today.

Uncover how Schneider Electric’s forecasts yield a €265.10 fair value, a 15% upside to its current price.

Eight Simply Wall St Community fair value estimates for Schneider Electric range from €144.43 to €265.10 per share, highlighting widely differing views. While some participants see strong upside, the company’s exposure to ongoing margin headwinds could be a crucial factor shaping future performance; explore how other investors assess these potential trade-offs.

Explore 8 other fair value estimates on Schneider Electric – why the stock might be worth as much as 15% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

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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 SU.PA.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Infineon Technologies (XTRA:IFX) has been attracting investor interest lately, with its stock showing consistent gains over the past month. The company’s steady performance invites a closer look at what is driving sentiment and valuation right now.

See our latest analysis for Infineon Technologies.

Momentum has picked up for Infineon Technologies this year, with a 15.7% year-to-date share price return reflecting renewed investor confidence after a solid stretch of gains. Over the past twelve months, the stock delivered an 18.97% total shareholder return, highlighting a return to form after a modest start to the year and suggesting the market is factoring in Infineon’s growth prospects.

If this surge has you scanning for other semiconductor standouts, now is a great time to explore the full list of industry movers with our See the full list for free.

With Infineon now trading at a notable discount to both analyst targets and intrinsic valuation, yet riding strong momentum and robust earnings growth, the real question is whether investors are glimpsing an attractive entry point or if the market has already priced in the next phase of its growth story.

The current consensus sets Infineon Technologies’ fair value above its last close price, hinting at expectations for solid outperformance. This positive valuation rests on assumptions about the company’s accelerating role in next-gen semiconductor markets.

Infineon’s power and sensor solutions are experiencing accelerating demand from AI data center build-outs, with projected revenues in this segment growing from approximately €600 million this year to €1 billion next year. This reflects a strong multi-year increase in high-margin revenue from the rapid proliferation of AI infrastructure and rising chip content per device.

Read the complete narrative.

Want to peek behind this high valuation? The full narrative reveals bold forecasts around top-line growth and future profit margins, plus the one financial lever that could set Infineon apart from rivals if things go according to plan. Curious about what really powers this target? Dive in for the surprising quantitative story that shapes the consensus.

Result: Fair Value of €43.61 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent trade tensions or weaker-than-expected demand in electric vehicles could quickly challenge the positive outlook and reshape Infineon’s growth trajectory.

Find out about the key risks to this Infineon Technologies narrative.

While our DCF model points to significant undervaluation, a closer look at the current price-to-earnings ratio tells a different story. Infineon trades at 47.9x, which is well above the industry average of 36.5x, the peer average of 21.7x, and exceeds the fair ratio of 29.9x. This wide gap may indicate valuation risk if investor optimism fades. Which yardstick best reflects reality, and what could shift market sentiment next?

See what the numbers say about this price — find out in our valuation breakdown.

Prefer to put your own spin on the data, or want to run your own checks? Creating your own narrative is quick, straightforward, and can be done in just a few minutes. Do it your way

A great starting point for your Infineon Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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 IFX.DE.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Story Continues

Growth expectations and risk both play a big role in determining what the “right” PE ratio should be. Companies expected to grow faster or with less risk usually command higher PE multiples, while lower-growth or riskier firms typically trade at lower ratios.

Currently, Elevance Health trades at a PE ratio of 13.6x. This is significantly lower than the healthcare industry average of 22.7x, as well as the peer average of 27.7x. At first glance, this could suggest undervaluation, but surface-level peer comparisons do not always tell the full story.

Simply Wall St’s proprietary Fair Ratio for Elevance Health is 32.6x. Unlike basic benchmarks, the Fair Ratio is tailored to Elevance Health’s own circumstances by taking into account growth outlook, risk factors, profit margins, industry dynamics, and overall market position. This approach aims to deliver a more accurate picture of what multiple is justified for the company instead of relying on broad averages that might miss important context.

With a Fair Ratio of 32.6x and an actual PE ratio of 13.6x, Elevance Health appears undervalued on this measure, suggesting the market may be overlooking its earnings power and long-term prospects.

Result: UNDERVALUED

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Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story about Elevance Health. It is where you bring together your own view on the company’s prospects, including fair value, future revenue, earnings, and profit margins, to create a financial forecast with a real-world context. Narratives make investing more approachable by linking your view of a company’s business story to what you think it is worth, helping you move seamlessly from ideas to numbers to conclusions.

On Simply Wall St’s Community page, millions of investors use Narratives to decide when to buy or sell by quickly checking if their calculated Fair Value is above or below the current price, and updating their view as new information, like earnings or news, becomes available. For example, some investors believe Elevance Health should be worth $507 per share if Medicare Advantage and digital health initiatives contribute to growth, while others are more cautious, seeing fair value as low as $297 if cost pressures and Medicaid challenges persist. Narratives empower you to create, compare, and update your investment case as the story evolves.

Do you think there’s more to the story for Elevance Health? Head over to our Community to see what others are saying!

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 ELV.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com