Renault Undervalued

Renault’s share price has fallen 32.6% over the past year, yet discounted‑cash‑flow modelling values the stock at roughly €50.36 per share, implying a 48.8 % undervaluation versus the current market price. The company trades at a P/S ratio of 0.1x, well below the auto‑industry average of 0.6x and peer group average of 0.5x, and scores five of six valuation checks for being cheap, signalling that investors are pricing in significant execution and regulatory risk, particularly around emissions and its growing reliance on China.