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The Civil Aviation Authority of Singapore has awarded Thales (ENXTPA:HO) a contract to deliver Singapore’s NexGen Air Traffic Management System and new control radars. This project puts Thales’ aviation technology and long term infrastructure role in focus for investors.
See our latest analysis for Thales.
Thales shares trade at €245.9, with recent news around large defence and aviation contracts aligning with positive momentum, including a 30 day share price return of 7.19% and a 5 year total shareholder return of 208.58%.
If you want to see how other defence and infrastructure suppliers are priced, now is a good time to check out 35 power grid technology and infrastructure stocks
Thales now appears to be a robust defence and aviation supplier with recent contract wins and long-term infrastructure roles in locations such as Singapore. After this strong share price run, is the stock still reasonably priced or starting to look expensive?
Most Popular Narrative: 14.8% Undervalued
Based on the most followed narrative, Thales has a fair value estimate of €288.56 compared with the current share price of €245.9. That gap hinges on how future defence, cyber and aerospace earnings play out.
Acceleration of defense spending in France and across Europe, for example France raising its defense budget from €50 billion in 2025 to €64 billion by 2027, earlier than previously planned, is set to significantly boost order intake and revenue for Thales’ defense segment, supporting multi-year revenue growth visibility.
Want to see what sits behind that valuation call on Thales? The core of this narrative is how revenue growth, margins and earnings power are expected to shift over the next few years, and what kind of earnings multiple could be supported if those projections hold.
Result: Fair Value of €288.56 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this Thales narrative still faces pressure from execution risks in Cyber & Digital and from the group’s dependence on large European defence budgets and contract decisions.
Find out about the key risks to this Thales narrative.
Another View on Thales Valuation
While the narrative fair value suggests Thales is 14.8% undervalued at €288.56, the current P/E of 33.8x is higher than the 31x fair ratio and the 29.2x peer average. It sits close to the 34.1x European Aerospace & Defense average. Is the stock already priced for a lot to go right?
For a closer look at how these P/E gaps could narrow over time and what that might mean for valuation risk, See what the numbers say about this price — find out in our valuation breakdown.
ENXTPA:HO P/E Ratio as at Aug 2026 Next Steps
If this Thales story feels finely balanced between opportunity and risk, now is the moment to review the data yourself and move quickly to your own view using 3 key rewards and 1 important warning sign
Looking for more investment ideas beyond Thales?
If Thales has sharpened your interest in defence and infrastructure, do not stop here. Broader opportunities across the market could fit your portfolio even better.
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 HO.PA.
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