Dassault Aviation: Everyone Quotes The Wrong Discount - Buy

Summary Dassault Aviation is rated Buy, with ~8% upside to a EUR 299 fair value and a 1.7% dividend yield. DUAVF's backlog is fully contracted under IFRS 15, covering five years of work, but new order intake (0.69 book-to-bill) is a watchpoint. The Thales stake and true net cash cover most of the market cap, leaving the core fighter business at ~10x earnings, excluding major pending contracts. Key risks include delayed Indian orders, book-to-bill below one, delivery execution, and persistent valuation discounts due to governance and sector sentiment. guvendemir/iStock via Getty Images Dassault Aviation société anonyme ( DUAVF ) is the French maker of the Rafale fighter and the Falcon business jets. It's also one of the few defense primes whose reported backlog contains no options and no letters of This article was written by Jordan Aquilina 25 Followers Follow I am a bottom up, value oriented investor specializing in the aerospace and defense sector. My investment methodology combines fundamental analysis and macroeconomic considerations to identify overlooked investment ideas off the beaten path. I tend to focus on companies with less coverage that have a micro to small cap market capitalization. For my write ups I aim to remain disciplined and make the correct calculated choices especially when the market is excessively optimistic or pessimistic. contact me at: [email protected] Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.