Thinking about what to do with your Amundi shares right now? You are not alone. The world’s largest asset managers can be tricky to analyze, but Amundi’s trajectory over the past few years definitely gives would-be investors a lot to consider. We have seen the stock tick up 1.0% over the past week and manage a 3.0% gain year-to-date, all while giving up only a small amount in the last month. Over the past three years, the return has reached a remarkable 70.7%, which is quite the impressive run for anyone who has held on since before the pandemic. With a five-year return close behind at 59.8%, this is not exactly a company in crisis.
Much of this steady growth can be traced back to Amundi’s expansion into sustainable investment products and several strategic partnerships in Europe and Asia. These moves are reshaping risk perceptions and shifting Amundi’s profile from relatively defensive to one with more visible growth drivers. Investors are certainly noticing this as money flows into ESG and low-fee investment options.
If we dive into traditional measures of value, Amundi scores a 3 out of 6, meaning it passes half of the main undervaluation tests. So, is that enough? In the coming sections, we will break down how those valuation checks stack up and, perhaps even more importantly, explore a smarter path to understand Amundi’s true worth.
Approach 1: Amundi Excess Returns Analysis
The Excess Returns Model provides investors with a straightforward way to assess whether a company’s returns on invested capital are actually creating value above the cost of equity. In simple terms, it looks at how much profit Amundi generates from shareholders’ money compared to what it costs to obtain that capital, across the long term.
For Amundi, the current Book Value stands at €58.85 per share, with a Stable EPS of €7.25 per share according to the weighted future Return on Equity estimates from nine analysts. The Cost of Equity is slightly higher at €7.40 per share, resulting in an Excess Return of €-0.15 per share. Amundi’s average Return on Equity comes in at 11.36%, with analysts estimating the Stable Book Value to rise to €63.86 per share in coming years.
With this data in hand, the Excess Returns valuation model places Amundi’s intrinsic value below the current share price, implying the stock is trading about 6.3% above its fair value. This suggests that, based on these long-term return projections, Amundi appears marginally overvalued, but not dramatically so.
Simply Wall St performs a valuation analysis on every stock in the world every day (check out Amundi’s valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.
Approach 2: Amundi Price vs Earnings
For established, profitable companies like Amundi, the Price-to-Earnings (PE) ratio is one of the best metrics for evaluating value. Because it ties the company’s current share price directly to how much profit it earns per share, it allows for easy comparisons with both peers and broader industry benchmarks. Generally, a higher PE ratio implies the market expects stronger earnings growth or sees lower risk. In contrast, a lower PE may reflect more uncertainty or slower projected growth.
Amundi currently trades at a PE ratio of 8.1x. Compared to the Capital Markets industry average of 18.9x and a typical peer average of 17.6x, that is a substantial discount. On the surface, this could suggest the market is being cautious or undervaluing Amundi’s potential. However, it is important to recognize that peer and industry averages do not always capture the full picture, because they can skew high or low based on outliers or structural differences between companies.
This is where the Simply Wall St Fair Ratio comes in. The Fair Ratio analyzes factors like Amundi’s sector, profit margins, earnings growth, market cap, and risk to determine a more accurate benchmark. For Amundi, the Fair Ratio is 20.1x. By considering all these company-specific qualities, the Fair Ratio gives a better sense of what a reasonable PE should be, rather than relying solely on industry averages.
Amundi’s actual PE of 8.1x is well below its Fair Ratio of 20.1x. This signals that, by this measure, the company appears markedly undervalued and suggests there could be upside if fundamentals hold steady or improve.
Result: UNDERVALUED
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Amundi Narrative
Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your story behind the numbers, a way to spell out your personal view on Amundi by linking what you expect (future revenues, earnings, and margins) to a fair value for the company.
With Narratives, you connect the dots from Amundi’s business story to your financial forecast and then to the share price you believe is fair. It is a practical, easy-to-use tool available on Simply Wall St’s Community page and used by millions of investors worldwide. This tool helps you track and compare anyone’s outlook.
What makes Narratives especially useful is that they are updated dynamically as new news or earnings come in, so your view (and fair value) stays fresh. Investors can quickly see whether Amundi’s current price offers a bargain, is too high, or sits about right simply by comparing their own Narrative to the market price.
For example, the most optimistic Narrative on Amundi forecasts a fair value of €89.9 per share while the most cautious one lands at €68.0, showing just how much perspectives can vary depending on which “story” you believe about the company’s future.
