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Pirelli & C SPA (PIRC) Fair Value & Analysis

Consumer Cyclical · IT · Market cap €7.1B · ISIN IT0005278236

What is Pirelli & C SPA really worth?

PC Pirelli & C SPA PIRC · MI
Price€6.60
Fair Value€7.71
Upside+16.9%
Quality53/100

A solid business, trading 14% below our fair value of €7.71.

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Strengths

Healthy Growth (revenue 5y +9.8 %/yr)
Low debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Thin margins · 7.5% net margin
!Moderate moat 57/100
!Weak on future: 3 out of 100

For context

·3.64% dividend yield
Evidence: High Range €5.77 – €10.05

Fair value as of: Aug 20, 2026

From 24 valuation models · updated 16 days ago

Share price +0.9% 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 in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

€6.97 €2.75 Fair Value €7.71 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range €2.75 – €6.97 · fair‑value band €5.77 – €10.05 · the €6.60 price screens below the €7.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Pirelli & C SPA (PIRC) currently trades at €6.60, while our model-based Fair Value estimate is €7.71, implying the stock looks roughly 14.5% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of €9.23 per share, and 17 of the 24 models we run sit above the €6.60 price. Bear case: the Dividend Discount group reads lowest at €2.64, and 7 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Pirelli & C SPA generated revenue of €7.0B at a net margin of 7.5%. Revenue declined 2.6% year over year. It earns a return on equity of 8.7%. Net debt stands at €974M. Fundamentals as of Aug 20, 2026

Our scenario range runs from €5.77 (bear case) to €10.05 (bull case); at €6.60, 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 about 1% below its 52-week high and 24% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −38% fair-value upside, at 17%, PIRC screens cheaper 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 €0.1767 per share, which is 2.3 % 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 €7.46 €10.22 €15.22 80
Growth DCF €7.74 €10.41 €14.87 79
Owner Earnings €5.37 €7.43 €11.17 76
All 24 models by family
DCF Models
FCF DCF €7.46 €10.22 €15.22 80
Owner Earnings €5.37 €7.43 €11.17 76
5Y Revenue Exit €5.42 €7.73 €11.07 73
5Y EBITDA Exit €8.12 €12.34 €17.86 75
5Y P/E Exit €6.41 €9.42 €12.98 71
10Y Revenue Exit €6.02 €8.14 €10.51 68
10Y EBITDA Exit €7.78 €11.11 €14.90 69
10Y P/E Exit €6.76 €9.23 €11.75 65
Earnings-Based
Graham-Dodd €3.12 €5.41 €6.62 67
EPV €4.18 €4.97 €5.64 74
Dividend Discount
Gordon GGM €2.10 €2.64 €3.18 69
DDM Multi-Stage €2.10 €2.79 €3.61 67
Multiples
P/E Multiple €7.57 €10.09 €12.61 63
P/S Multiple €5.69 €7.59 €9.49 58
P/B Multiple €5.85 €7.80 €9.75 55
EV/EBIT €8.26 €11.28 €14.31 66
EV/EBITDA €10.00 €13.60 €17.20 67
EV/Revenue €4.52 €6.79 €9.07 53
Asset-Based
NCAV (Graham) €2.89 €3.88 €5.79 54
Growth DCF
Growth DCF €7.74 €10.41 €14.87 79
Rev-Margin DCF €5.42 €7.90 €11.01 73
Economic Profit
Residual Income €4.76 €5.08 €5.58 76
ROIC Compounder €4.18 €4.97 €5.64 72
Growth Earnings
Growth-Adj P/E €5.33 €7.62 €9.91 67

Widest divergence: DCF Models (€9.23) versus Dividend Discount (€2.64). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 12.9
P/S ratio 0.94 P/E × margin
EPS (TTM) €0.5100 price ÷ EPS = P/E 12.9
Dividend yield 3.6% payout 47.1%
Net margin 7.2% FY2025
Return on equity 8.7% TTM
More key figures
Profitability
Return on assets (EBIT) 5.2% avg 5y
Operating margin 13.5% TTM
Growth
Revenue (TTM) €7.0B TTM
Revenue growth (YoY) −2.6% 3y avg +1.2%
EPS growth (YoY) +10.9%
Balance sheet & cash flow
Free cash flow €928M FY2025
Net debt €974M FY2025 · ≈ 1.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 51 · Market factors (momentum, volatility) 66

Profitability 40
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 28
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

Pirelli & C. S.p.A., through its subsidiaries, manufactures and sells tires for cars, motorcycles, and bicycles in Europe, North America, the Asia-Pacific, South America, Russia, India, the Middle East, and Africa.

Full company description

Pirelli & C. S.p.A., through its subsidiaries, manufactures and sells tires for cars, motorcycles, and bicycles in Europe, North America, the Asia-Pacific, South America, Russia, India, the Middle East, and Africa. The company offers car tires under the P ZERO, Cinturato, Scorpion, Carrier, Winter Sottozero, and Ice brands; racing tires under the P Zero Trofeo R and P Zero Slick and Rain brands; rally tires under the P Zero, Scorpion, Scorpion Snow, and Sottozero Ice brands; collezione tires for classic and collector cars; and motorcycle tires under the Pirelli Diablo Superbike, Pirelli Diablo Supercorsa SP, Pirelli Diablo Rosso Corsa II, Pirelli Diablo Rosso Scooter, Pirelli Angel GT II, Pirelli Scorpion Trail II, Pirelli Scorpion Rally STR, Pirelli Scorpion MX, Metzeler Sportec M9 RR, Metzeler Sportec M7 RR, Metzeler Roadtec 01 SE, Metzeler Karoo Street, Metzeler Karoo 3, Metzeler Karoo Extreme, and Metzeler Cruisetec brands. It also provides bicycle tires under the P Zero Velo, P Zero Race TLR, Cinturato Velo, Cinturato Gravel, Scorpion MTB, Scorpion MTB XC, Scorpion Trail, Scorpion Enduro, Scorpion E-MTB, CYCL-E DT, CYCL-E GT, CYCL-E XT, and CYCL-E WT brands. In addition, the company offers Run Flat and Seal Inside technologies, which enable cars to continue driving after a puncture; Pirelli Noise Cancelling System (PNCS) for reducing noise generated by rolling; and Elect, a line of tires for electric vehicles. Further, it provides customer-oriented services, such as car valets and courtesy car services. The company sells its products through its stores. It serves vehicle manufacturers, retailers, specialized distributors, and car dealers. Pirelli & C. S.p.A. was incorporated in 1872 and is headquartered in Milan, Italy.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pirelli & C SPA reported revenue of €6.9B in FY2025 versus €5.3B in FY2021, a compound +6.5%/yr. Reported net income was €498M in FY2025, compounding +13.2%/yr from FY2021.

Growth Quality 80/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€6.9B
Latest YoY
+1.3%
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.
+1.2%
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.
+9.8%
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.
+0.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.3% (8.7 + 3.6)
Revenue +6.5%/yr
FY21 €5.3B
FY22 €6.6B
FY23 €6.7B
FY24 €6.8B
FY25 €6.9B
Net income +13.2%/yr
FY21 €303M
FY22 €418M
FY23 €479M
FY24 €468M
FY25 €498M
Character of growth · EPS growth decomposed (2012-2023) −6.0 % p.a.
Revenue per share −7.6 %

of which total revenue +0.2 % · buybacks/dilution −7.8 %

EBIT margin −2.4 %
Tax rate +1.8 %
Residual (interest, one-offs) +2.3 %

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). "Pirelli & C SPA Fair Value". https://www.fairvalue-calculator.com/stock/PIRC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Auto Parts · 640 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Below median
Fair Value upside +17% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 3.6% · Top 25%
Debt / equity 0.38× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 12.9× · Cheaper than 75% of peers
P/B 1.31× · Cheaper than median
P/S (TTM) 1.17× · Pricier than median
P/FCF 8.8× · Pricier than 75% of peers
EV/EBITDA 6.6× · Cheaper than median

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
VALUE56 · sector 14
FUTURE3 · sector 21
PAST37 · sector 28
HEALTH81 · sector 95
DIVIDEND73 · sector 32

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 Pirelli & C SPA (PIRC) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of €7.71 versus a price of €6.60, about +17% upside (undervalued).
What is the fair value of PIRC?
Our model-based fair value for Pirelli & C SPA is €7.71 (as of Aug 20, 2026), built from audited fundamentals. The current price: €6.60.
What is the quality score of PIRC?
Pirelli & C SPA has a Quality Score of 53/100. 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 Pirelli & C SPA (PIRC)?
Pirelli & C SPA reported trailing-twelve-month revenue of about €7.0B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of PIRC?
The net profit margin of Pirelli & C SPA is about 7.5%, meaning it keeps roughly 7.5% of revenue as net income. Based on the latest reported figures.
Does Pirelli & C SPA pay a dividend?
Pirelli & C SPA currently shows a dividend yield of about 3.64% relative to its recent price (as of Aug 20, 2026).
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