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Compagnie Generale des Etablissements Michelin SCA (ML) Fair Value & Analysis

Consumer Cyclical · FR · Market cap €22.9B · ISIN FR001400AJ45

What is Compagnie Generale des Etablissements Michelin SCA really worth?

CG Compagnie Generale des Etablissements Michelin SCA ML · PA
Price€35.16
Fair Value€36.47
Upside+3.7%
Quality62/100

A solid business, currently priced close to our fair value of €36.47.

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Strengths

Low debt · generates free cash flow
Ranks above peers (10/15)

Risks

!Weak Growth (revenue 5y +4.9 %/yr)
!Thin margins · 7.8% net margin
!Moderate moat 50/100

For context

·12.80% dividend yield
Evidence: High Range €24.62 – €54.24

Fair value as of: Sep 5, 2026

From 24 valuation models · updated today

Share price +3.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (€24.62 to €54.24) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€35.27 €18.90 Fair Value €36.47 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range €18.90 – €35.27 · fair‑value band €24.62 – €54.24 · the €35.16 price screens below the €36.47 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Compagnie Generale des Etablissements Michelin SCA (ML) currently trades at €35.16, while our model-based Fair Value estimate is €36.47, implying the stock looks roughly 3.6% fairly valued today. The Quality Score stands at 62/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of €41.23 per share, and 13 of the 24 models we run sit above the €35.16 price. Bear case: the Dividend Discount group reads lowest at €15.96, and 11 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Compagnie Generale des Etablissements Michelin SCA generated revenue of €23.8B at a net margin of 7.8%. Revenue grew 13.4% year over year. It earns a return on equity of 13.4%. Net debt stands at €2.9B. Fundamentals as of Sep 5, 2026

Our scenario range runs from €24.62 (bear case) to €54.24 (bull case); at €35.16, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 42% fair-value upside, at 4%, ML screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €3.88 per share, which is 10.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €23.55 €32.71 €49.81 80
Growth DCF €24.53 €33.45 €48.82 79
Owner Earnings €21.87 €30.43 €46.40 76
All 24 models by family
DCF Models
FCF DCF €23.55 €32.71 €49.81 80
Owner Earnings €21.87 €30.43 €46.40 76
5Y Revenue Exit €25.12 €38.05 €56.65 72
5Y EBITDA Exit €37.66 €59.45 €87.90 74
5Y P/E Exit €28.46 €43.75 €61.69 70
10Y Revenue Exit €23.47 €34.70 €47.69 67
10Y EBITDA Exit €32.01 €48.86 €68.37 68
10Y P/E Exit €26.35 €38.47 €51.02 64
Earnings-Based
Graham-Dodd €15.87 €27.57 €33.77 66
EPV €21.77 €25.72 €29.17 74
Dividend Discount
Gordon GGM €12.54 €15.96 €19.48 69
DDM Multi-Stage €12.54 €16.98 €22.38 67
Multiples
P/E Multiple €38.51 €51.35 €64.19 63
P/S Multiple €29.76 €39.68 €49.60 58
P/B Multiple €29.76 €39.68 €49.60 55
EV/EBIT €42.89 €57.82 €72.74 66
EV/EBITDA €53.65 €72.17 €90.68 67
EV/Revenue €28.30 €41.23 €54.17 53
Asset-Based
NCAV (Graham) €12.67 €16.97 €25.34 54
Growth DCF
Growth DCF €24.53 €33.45 €48.82 79
Rev-Margin DCF €25.12 €38.47 €54.83 72
Economic Profit
Residual Income €21.92 €24.02 €31.85 76
ROIC Compounder €21.77 €25.78 €30.39 72
Growth Earnings
Growth-Adj P/E €27.15 €38.79 €50.42 67

Widest divergence: Multiples (€41.23) versus Dividend Discount (€15.96). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 3.4 as of Jul 11, 2026
P/S ratio 0.22 P/E × margin
EPS (TTM) €10.24 price ÷ EPS = P/E 3.4
Dividend yield 12.8% payout 43.9%
Net margin 6.4% FY2025
Return on equity 13.4% TTM
More key figures
Profitability
Return on assets (EBIT) 7.8% avg 5y
Operating margin 12.0% TTM
Growth
Revenue (TTM) €23.8B TTM
Revenue growth (YoY) +13.4% 3y avg −3.1%
EPS growth (YoY) +7.0%
Balance sheet & cash flow
Free cash flow €1.8B FY2025
Net debt €2.9B FY2025 · ≈ 1.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 60 · Market factors (momentum, volatility) 65

Profitability 41
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Compagnie Générale des Établissements Michelin Société en commandite par actions manufactures and sells tires worldwide.

Full company description

Compagnie Générale des Établissements Michelin Société en commandite par actions manufactures and sells tires worldwide. The company offers tires for private use covering cars, racing, biking, motorcycles, scooters, and mopeds; and professional use, such as freight and people transport, agriculture, construction and industrial, mining and quarries, corporate fleets, tradesmen and professionals, civil and military operations, light rail, and aircraft. It is also involved in the provision of tire-related services, including development of mobility solutions for fleet managers, vehicle manufacturers, farmers, distributors, and individuals; mobility services, such as road maps, mobile apps, itineraries, and travel guides; lifestyle products comprising car and bike accessories, shoe soles, and sports and leisure gears; and high-tech materials that include 3D metal printing, specialty, rubber, biosourced, and recycled materials. Compagnie Générale des Établissements Michelin Société en commandite par actions was incorporated in 1863 and is based in Clermont-Ferrand, France.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Compagnie Generale des Etablissements Michelin SCA reported revenue of €26.0B in FY2025 versus €23.8B in FY2021, a compound +2.2%/yr. Reported net income was €1.7B in FY2025, compounding −2.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€26.0B
Latest YoY
−4.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.9%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.0% (−0.8 + 12.8)
Revenue +2.2%/yr
FY21 €23.8B
FY22 €28.6B
FY23 €28.3B
FY24 €27.2B
FY25 €26.0B
Net income −2.5%/yr
FY21 €1.8B
FY22 €2.0B
FY23 €2.0B
FY24 €1.9B
FY25 €1.7B
Character of growth · EPS growth decomposed (2014-2025) +4.8 % p.a.
Revenue per share +3.9 %

of which total revenue +3.2 % · buybacks/dilution +0.7 %

EBIT margin −2.2 %
Tax rate +2.0 %
Residual (interest, one-offs) +1.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Compagnie Generale des Etablissements Michelin SCA Fair Value". https://www.fairvalue-calculator.com/stock/ML

Peer Group

Consumer Discretionary · 3805 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Automobiles & Auto Parts” was too small, so the broader sector is used.)

Quality Score 62 · Above median
Fair Value upside +4% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 12% · Top 25%
Revenue growth 13% · Top 25%
Dividend yield (TTM) 12.8% · Top 25%
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Consumer Discretionary median · lower = cheaper

P/E (TTM) 3.4× · Cheaper than 75% of peers
P/B 1.47× · Pricier than median
P/S (TTM) 1.12× · Pricier than median
P/FCF 14.8× · Pricier than 75% of peers
EV/EBITDA 6.3× · Cheaper than median
PEG 6.99× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE38 · sector 20
FUTURE67 · sector 14
PAST53 · sector 22
HEALTH86 · sector 96
DIVIDEND100 · sector 45

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Compagnie Generale des Etablissements Michelin SCA (ML) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of €36.47 versus a price of €35.16, about +4% upside (fairly valued).
What is the fair value of ML?
Our model-based fair value for Compagnie Generale des Etablissements Michelin SCA is €36.47 (as of Sep 5, 2026), built from audited fundamentals. The current price: €35.16.
What is the quality score of ML?
Compagnie Generale des Etablissements Michelin SCA has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Compagnie Generale des Etablissements Michelin SCA (ML)?
Compagnie Generale des Etablissements Michelin SCA reported trailing-twelve-month revenue of about €23.8B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of ML?
The net profit margin of Compagnie Generale des Etablissements Michelin SCA is about 7.8%, meaning it keeps roughly 7.8% of revenue as net income. Based on the latest reported figures.
Does Compagnie Generale des Etablissements Michelin SCA pay a dividend?
Compagnie Generale des Etablissements Michelin SCA currently shows a dividend yield of about 12.80% relative to its recent price (as of Sep 5, 2026).
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