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Prosus (ENXTAM:PRX) has completed cash tender offers for its 2027 notes, accepting all valid tenders in both series and setting payment for July 16, 2026. The purchased notes will be cancelled.
See our latest analysis for Prosus.
Prosus shares trade at €40.425 after a mixed period, with the 30 day share price return up 4.19% but the year to date share price return down 24.86%. The 3 year total shareholder return of 32.62% contrasts with a 17.28% decline over the past year, suggesting momentum has cooled even as the recent debt refinancing shapes how investors think about risk.
If this type of refinancing story has you thinking about where else capital is moving, it could be a good time to check out 106 top founder-led companies
Prosus has recently reshaped part of its balance sheet, and the share price has cooled over the past year. The key issue now is whether the current valuation still offers a compelling entry point for new buyers.
Most Popular Narrative: 2% Undervalued
Prosus closed at €40.43, which sits slightly below the most followed fair value estimate of about €41.27. That gap all comes down to how earnings power and margins are expected to evolve.
The bearish analysts expect the number of shares outstanding to decline by 2.46% per year for the next 3 years. To value all of this in today's terms, we will use a discount rate of 7.51%, as per the Simply Wall St company report.
Curious what kind of revenue growth, margin profile and future earnings multiple need to line up to support that fair value for Prosus? The narrative leans on a slower growth path, shrinking profitability and a richer P/E than today, all wired into one valuation story that challenges you to test those assumptions.
Result: Fair Value of €41.27 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks that could upset this underpriced narrative, including ongoing regulatory pressure on tech assets and Prosus's heavy reliance on Tencent to support group value.
Find out about the key risks to this Prosus narrative.
Another View on Prosus: Cash Flows Tell a Different Story
The earlier narrative framed Prosus as around 2% undervalued at €41.27 based on analyst targets and earnings assumptions. Our DCF model points in a very different direction, with Prosus at €40.43 trading well above an estimated future cash flow value of €9.39, which screens as clearly overvalued on this measure.
When one framework suggests a small discount and the SWS DCF model flags a steep premium, it puts the spotlight on a simple question for you as an investor: are you more comfortable anchoring on earnings multiples or on long term cash flow estimates?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out Prosus for example ). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 220 high quality undervalued stocks . If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this mix of risks and rewards around Prosus leaves you on the fence, now is a good time to inspect the data and stress test the assumptions for yourself, then weigh up the 3 key rewards and 2 important warning signs
Looking for more ideas beyond Prosus?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PRX.AS .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
