Compagnie Generale des Etablissements Michelin SCA (ML) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Compagnie Generale des Etablissements Michelin SCA stock €38.11, price €33.34, upside +14.3%, quality 64 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range €18.90 – €35.27 · fair‑value band €26.82 – €50.42 · the €33.34 price screens below the €38.11 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Compagnie Générale des Établissements Michelin manufactures and sells tires worldwide.
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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 was incorporated in 1863 and is based in Clermont-Ferrand, France.
Stock analysis
Compagnie Generale des Etablissements Michelin SCA (ML) currently trades at €33.34, while our model-based Fair Value estimate is €38.11, implying the stock looks roughly 13% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of €51.35 per share, and 16 of the 24 models we run sit above the €33.34 price.
Bear case: the Asset-Based group reads lowest at €12.65, and 8 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: €26.82 (bear) to €50.42 (bull), the price of €33.34 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
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.
Key figures
Market cap €23.2B Large · P/E ratio 3.0 · P/S ratio 0.23 · EPS (TTM) €10.24 · Dividend yield 13.5% · Net margin 7.8% · Return on equity 13.4% · Return on assets (EBIT) 7.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 5% below its 52-week high and 29% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 27% fair-value upside, at 14%, ML screens richer than that median.
Fair Value models
Bear€26.82Fair Value €38.11Bull€50.42
Price €33.34 · Upside +14.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (€4.88 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−4.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−3.1%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
Start year 2020 (pandemic). Over 10 years: +2.1% a year
Revenue growth 23 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+2.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+12.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−0.8%
Dividend (yield on the price)13.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−0.8% vs 4.4%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 9%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about +1.3% a year for the price and +1.2% for the forecasts.
AI conclusion: Strong momentum in premium replacement tires and diversification into polymer composites support the business, yet thin evidence leaves its overall competitive position unclear.
Main risk: Low-cost imports from Chinese manufacturers such as Sailun and Linglong could erode Michelin's market share in replacement and original equipment segments and force price reductions that squeeze margins.
Bull case: Michelin could offset competitive and cost pressures by accelerating its shift to premium specialty tires, polymer solutions and local-for-local manufacturing while leveraging digital twin and retread technologies for higher-margin services.
Bear case: Persistent low-cost Asian imports and elevated European costs could lead to sustained volume declines, further plant closures and structurally lower margins if premium differentiation fails to compensate.
Michelin counts on strong momentum in its premium replacement tires and a favorable product mix to counter weaker original equipment volumes. Targeted acquisitions in polymer composites open new revenue streams beyond tires. Our models see it as undervalued. Will the aftermarket focus and diversification sustain growth if auto production remains subdued, or does the company still need a broader recovery in vehicle output?
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Peer Groupⓘ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.Automobiles & Auto Parts · 15 stocks
Beats the industry median on 6/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside+14.3% · Above median
Profitability
Return on assets4.8% · Above median
Net margin (12 months)7.8% · Top 25%
Operating margin (12 months)12.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)13.4% · Below median
Dividend yield (12 months)13.5% · Top 25%
Balance sheet
Debt / equity0.28× · Above median
Valuation Multiplesvs Automobiles & Auto Parts median · lower = cheaper
P/B1.28× · Priciest 25%
P/S (12 months)0.97× · Priciest 25%
Price / free cash flow (fiscal year)13.0× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Compagnie Generale des Etablissements Michelin SCA Fair Value". https://www.fairvalue-calculator.com/stock/ML
Frequently asked questions
Is Compagnie Generale des Etablissements Michelin SCA (ML) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of €38.11 versus a price of €33.34, about +14% upside (undervalued).
What is the fair value of ML?
Our model-based fair value for Compagnie Generale des Etablissements Michelin SCA is €38.11 (as of Nov 4, 2026), built from audited fundamentals. The current price: €33.34.
What is the quality score of ML?
Compagnie Generale des Etablissements Michelin SCA has a Quality Score of 64/100. 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 price target for Compagnie Generale des Etablissements Michelin SCA (ML)?
Our model-based price target is the fair value of €38.11 (as of Nov 4, 2026) from 24 valuation models. Cautious scenario €26.82, optimistic scenario €50.42. It is a calculation from audited fundamentals, not an analyst target.
What is the Compagnie Generale des Etablissements Michelin SCA stock forecast for 2026?
Our models put fair value at €38.11, about +14% upside versus a price of €33.34 (undervalued). Cautious scenario €26.82, optimistic scenario €50.42. The calculation is refreshed regularly with new filings.
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 Nov 4, 2026).
Does Compagnie Generale des Etablissements Michelin SCA pay a dividend?
Compagnie Generale des Etablissements Michelin SCA currently shows a dividend yield of 13.50% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Compagnie Generale des Etablissements Michelin SCA (ML)?
For today's price to be fair in a discounted-cash-flow model, Compagnie Generale des Etablissements Michelin SCA would have to grow free cash flow by +3.5 % per year for five years (discount rate 10.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.9 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of ML use?
Our models discount Compagnie Generale des Etablissements Michelin SCA at 10.0 %: a base by market capitalisation (large), damped by beta 1.09, country premium for France. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Compagnie Generale des Etablissements Michelin SCA that is +3.5 % per year a year over ten years, using the same discount rate (10.0 %) and the same formula as our fair value.
How much growth has Compagnie Generale des Etablissements Michelin SCA (ML) delivered so far?
Over the past 5 years revenue at Compagnie Generale des Etablissements Michelin SCA grew +4.9 % a year. The price currently implies +3.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Compagnie Generale des Etablissements Michelin SCA (ML) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Compagnie Generale des Etablissements Michelin SCA (+3.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Compagnie Generale des Etablissements Michelin SCA (ML)?
The free-cash-flow yield on the price is 7.72 %: that much free cash flow Compagnie Generale des Etablissements Michelin SCA produces per unit of market value. When it exceeds the discount rate of our models (10.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Compagnie Generale des Etablissements Michelin SCA (ML)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Compagnie Generale des Etablissements Michelin SCA it is €38.11 per share (as of Nov 4, 2026), against a price of €33.34. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Compagnie Generale des Etablissements Michelin SCA stock overvalued or undervalued in 2026?
As of Nov 4, 2026, ML trades below its calculated fair value: price €33.34, fair value €38.11, a gap of about +14% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ML?
No. The price is what the market pays today (€33.34); the fair value is what the company's own numbers justify (€38.11). For Compagnie Generale des Etablissements Michelin SCA the two are €4.77 per share apart. That gap is exactly why we show both numbers side by side.
How much is Compagnie Generale des Etablissements Michelin SCA worth?
The market values Compagnie Generale des Etablissements Michelin SCA at about €23.2B (market capitalisation, as of Nov 4, 2026). Per share that is €33.34; our models calculate a fair value of €38.11 per share.
What do the bullish and bearish scenarios say about ML?
Our models span a range for Compagnie Generale des Etablissements Michelin SCA: cautious scenario €26.82, base €38.11, optimistic €50.42 per share (as of Nov 4, 2026, price €33.34). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ML?
Compagnie Generale des Etablissements Michelin SCA trades at a price-to-earnings ratio of 3.0 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €38.11 is built from several models across several years. Other multiples: PEG 7.0, P/B 1.3, P/S 1.0, EV/EBITDA 5.5.
What is the PEG ratio of ML?
The PEG ratio of Compagnie Generale des Etablissements Michelin SCA is 6.99 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Compagnie Generale des Etablissements Michelin SCA (ML)?
Balance-sheet figures for Compagnie Generale des Etablissements Michelin SCA (as of Nov 4, 2026): return on equity 13.4%, debt of 0.28 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is ML from its 52-week high?
Compagnie Generale des Etablissements Michelin SCA trades at €33.34, about 5% below its 52-week high of €35.17 and 29% above the low of €25.88 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of €38.11 is for.
Which stocks are comparable to Compagnie Generale des Etablissements Michelin SCA?
From the same area (Consumer Cyclical) we also value GTCAP, ESTec Corporation, Hwashin Precision Engineering Co, Sambo Motors Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Compagnie Generale des Etablissements Michelin SCA stock attractive at the current price?
The data as of Nov 4, 2026: price €33.34, calculated fair value €38.11 (+14%), Quality Score 64/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ML calculated?
We run Compagnie Generale des Etablissements Michelin SCA through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €38.11, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Compagnie Generale des Etablissements Michelin SCA currently trades 13% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Compagnie Generale des Etablissements Michelin SCA (ML)?
The closing price on Nov 5, 2026 was €33.34. Our model-based fair value is €38.11, about +14% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Compagnie Generale des Etablissements Michelin SCA right now?
A fairly wide model range (€26.82 to €50.42) leaves room in how you read the outcome. 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.
Where does the earnings growth of Compagnie Generale des Etablissements Michelin SCA (ML) come from?
Earnings per share at Compagnie Generale des Etablissements Michelin SCA grew +4.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.9 %, EBIT margin −2.2 %, tax rate +2.0 %, residual (interest, one-offs) +1.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Compagnie Generale des Etablissements Michelin SCA
How large is the market capitalisation of Compagnie Generale des Etablissements Michelin SCA (ML)?
The market capitalisation of Compagnie Generale des Etablissements Michelin SCA is €23.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Compagnie Generale des Etablissements Michelin SCA (ML)?
The price-to-sales ratio of Compagnie Generale des Etablissements Michelin SCA is 0.23 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Compagnie Generale des Etablissements Michelin SCA (ML)?
Earnings per share at Compagnie Generale des Etablissements Michelin SCA are €10.24 (price ÷ EPS = P/E 3.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Compagnie Generale des Etablissements Michelin SCA (ML)?
The dividend yield of Compagnie Generale des Etablissements Michelin SCA is 13.5% (payout 43.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Compagnie Generale des Etablissements Michelin SCA (ML)?
The net margin of Compagnie Generale des Etablissements Michelin SCA is 7.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Compagnie Generale des Etablissements Michelin SCA (ML)?
The return on equity (ROE) of Compagnie Generale des Etablissements Michelin SCA is 13.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Compagnie Generale des Etablissements Michelin SCA (ML)?
On an EBIT basis the return on assets of Compagnie Generale des Etablissements Michelin SCA is 7.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Compagnie Generale des Etablissements Michelin SCA (ML)?
The operating margin of Compagnie Generale des Etablissements Michelin SCA is 12.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Compagnie Generale des Etablissements Michelin SCA (ML)?
Revenue at Compagnie Generale des Etablissements Michelin SCA is growing +13.4% versus a year earlier (3y avg −3.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Compagnie Generale des Etablissements Michelin SCA (ML)?
Earnings per share at Compagnie Generale des Etablissements Michelin SCA are growing +7.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Compagnie Generale des Etablissements Michelin SCA (ML) carry?
The net debt of Compagnie Generale des Etablissements Michelin SCA is €2.9B (fiscal year 2025, ≈ 1.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026