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Pirelli & C. S.p.A (PIRC) Fair Value & Analysis

Consumer Cyclical · IT · Market cap €7.1B

PC Pirelli & C. S.p.A PIRC · MI
Price€6.55
Fair Value€7.83
Upside+19.5%
Quality53/100
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Healthy Growth
Thin margins · 7.5% net margin
Low debt · generates free cash flow
3.81% dividend yield
Ranks above peers (10/14)
Moderate moat 56/100
Evidence: High Range €5.60 – €10.54 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from €9.37 to €7.83 (−16.5%) since Jun 24, 2026. Share price −2.2% over the past month.

A solid business, screening 20% undervalued on our models.

What matters now

  • A fairly wide model range (€5.60 to €10.54) leaves room in how you read the outcome.
  • Our model range runs from €5.60 (bear) to €10.54 (bull), base €7.83. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 53/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

€6.98 €2.89 Fair Value €7.83 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range €2.89 – €6.98 · fair‑value band €5.60 – €10.54 · the €6.55 price screens below the €7.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Pirelli & C. S.p.A (PIRC) currently trades at €6.55, while our model-based Fair Value estimate is €7.83, implying the stock looks roughly 19.5% undervalued today. The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Pirelli & C. S.p.A 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 Jul 18, 2026

Our scenario range runs from €5.60 (bear case) to €10.54 (bull case); at €6.55, 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 2% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at 20%, PIRC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF €7.74 €10.41 €14.87 80
Residual Income €4.76 €5.08 €5.58 76
Rev-Margin DCF €5.42 €7.90 €11.01 74
All 24 models by family
DCF Models
FCF DCF €7.46 €10.22 €15.22 38
Owner Earnings €5.37 €7.43 €11.17 31
5Y Revenue Exit €5.42 €7.73 €11.07 39
5Y EBITDA Exit €8.12 €12.34 €17.86 41
5Y P/E Exit €6.41 €9.42 €12.98 38
10Y Revenue Exit €6.02 €8.14 €10.51 36
10Y EBITDA Exit €7.78 €11.11 €14.90 37
10Y P/E Exit €6.76 €9.23 €11.75 35
Earnings-Based
Graham-Dodd €3.12 €5.41 €6.62 54
EPV €4.18 €4.97 €5.64 59
Dividend Discount
Gordon GGM €2.10 €2.64 €3.18 70
DDM Multi-Stage €2.10 €2.79 €3.61 61
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 53
EV/EBITDA €10.00 €13.60 €17.20 54
EV/Revenue €4.52 €6.79 €9.07 43
Asset-Based
NCAV (Graham) €2.89 €3.88 €5.79 50
Growth DCF
Growth DCF €7.74 €10.41 €14.87 80
Rev-Margin DCF €5.42 €7.90 €11.01 74
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 68

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

Key figures & financial health

Revenue (TTM) €7.0B
Revenue growth (YoY) -2.6%
Net margin 7.5%
Return on equity 8.7%
Free cash flow €928M FY2025
P/E ratio 12.7
More key figures
Operating margin 13.5%
EPS (TTM) €0.5100
Dividend yield 3.8%
EPS growth (YoY) +10.9%
Net debt €974M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 51 · Market factors (momentum, volatility) 62

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 70
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 68
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.

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. S.p.A 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. growth/yr (3Y)
+1.2%
Avg. growth/yr (5Y)
+9.8%
Avg. growth/yr (23Y)
+0.0%
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

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Cite: Fair Value Calculator (2026). "Pirelli & C. S.p.A 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 · 642 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 · Above median
Fair Value upside +20% · 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 -3% · Below median
Dividend yield (TTM) 3.8% · Top 25%
Debt / equity 0.38× · Higher than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 12.7× · Cheaper than 75% of peers
P/B 1.30× · Cheaper than median
P/S (TTM) 1.16× · Pricier than median
P/FCF 8.8× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than median

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.

VALUE 59 · sector 17
FUTURE 0 · sector 23
PAST 35 · sector 26
HEALTH 81 · sector 95
DIVIDEND 76 · sector 30

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

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Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
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Frequently asked questions

Is Pirelli & C. S.p.A (PIRC) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of €7.83 versus a price of €6.55, about +20% (undervalued).
What is the fair value of PIRC?
Our model-based fair value for Pirelli & C. S.p.A is €7.83 (as of Jul 18, 2026), built from audited fundamentals. The current price is €6.55.
What is the quality score of PIRC?
Pirelli & C. S.p.A 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. S.p.A (PIRC)?
Pirelli & C. S.p.A reported trailing-twelve-month revenue of about €7.0B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of PIRC?
The net profit margin of Pirelli & C. S.p.A is about 7.5%, meaning it keeps roughly 7.5% of revenue as net income. Based on the latest reported figures.
Does Pirelli & C. S.p.A pay a dividend?
Pirelli & C. S.p.A currently shows a dividend yield of about 3.81% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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