Compagnie Générale des Établissements Michelin Société en commandite par actions (ML.PA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+5.4%

€34.10

vs €32.36 price

Levered DCF

€52.53

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.77

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12×	12×	11.73×	9.25×	13.97×	29.82×	11.27×	9.26×
P/B	1.1×	1.21×	1.3×	1.08×	1.72×	1.48×	1.48×	1.28×
P/S	0.77×	0.83×	0.82×	0.65×	1.08×	0.91×	0.81×	0.7×
EV / EBITDA	4.92×	5.56×	5.53×	4.77×	6.43×	7.16×	5.63×	5.16×
Gross margin	27.0%	28.5%	28.0%	26.1%	29.0%	27.5%	29.0%	29.6%
Operating margin	9.1%	9.7%	9.4%	11.6%	12.2%	9.2%	12.1%	11.9%
Net margin	6.4%	6.9%	7.0%	7.0%	7.7%	3.1%	7.3%	7.6%
Current ratio	1.9×	1.76×	1.77×	1.67×	1.68×	1.83×	1.57×	1.66×
Debt / equity	0.37×	0.4×	0.35×	0.44×	0.53×	0.69×	0.54×	0.54×
Interest coverage	6.68×	12.12×	6.85×	13.69×	15.02×	7.8×	8.61×	12.09×
Dividend yield	4.9%	4.3%	3.8%	4.3%	1.6%	1.9%	3.4%	4.1%
Payout ratio	58.5%	51.0%	45.0%	40.1%	22.2%	56.5%	38.0%	38.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.2%	10.1%	11.0%	11.7%	12.3%	5.0%	13.2%	13.8%
Return on invested capital	6.1%	6.7%	7.5%	8.9%	8.0%	4.9%	8.8%	8.5%
Return on assets	4.8%	5.0%	5.6%	5.7%	5.3%	2.0%	5.5%	5.6%
Free cash flow yield	9.0%	9.2%	13.1%	-1.1%	4.7%	10.6%	7.8%	8.4%
Earnings yield	8.3%	8.3%	8.5%	10.8%	7.2%	3.4%	8.9%	10.8%
Enterprise value	€22.9B	€26.2B	€27B	€23.4B	€29.2B	€22.7B	€25.2B	€19.9B
Net debt / EBITDA	0.63×	0.77×	0.76×	0.99×	0.77×	1.26×	1.25×	1.14×
Cash conversion cycle (days)	82	87	96	117	109	107	109	108