| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 66.10 | 107 |
| Intrinsic value (DCF) | 198.10 | 519 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 37.90 | 18 |
GL Events SA (LSE: 0IX0.L) is a leading French provider of integrated event solutions, operating across three key divisions: GL Events Live, GL Events Exhibitions, and GL Events Venues. Headquartered in Lyon, France, the company specializes in turnkey event management, offering services such as design, consulting, and staging for corporate, institutional, and sports events. Its Exhibitions division manages a diverse portfolio of trade shows and consumer fairs spanning industries like food, culture, construction, and leisure. The Venues division oversees a network of 50 multi-purpose facilities, including convention centers and concert halls. Founded in 1978 and listed on the London Stock Exchange, GL Events SA has established itself as a key player in the global events industry, leveraging its expertise in venue management and event coordination. With a market capitalization of approximately €704 million, the company serves a broad clientele, supported by its subsidiary Polygone SA.
GL Events SA presents a mixed investment profile. On the positive side, the company operates in a resilient industry with diversified revenue streams from live events, exhibitions, and venue management. Its strong cash position (€533 million) and operating cash flow (€199 million) provide financial flexibility. However, the company carries significant debt (€1.57 billion), which could pose risks in a rising interest rate environment. The beta of 1.443 indicates higher volatility compared to the market, suggesting sensitivity to economic cycles. The dividend yield (€0.7 per share) may appeal to income-focused investors, but the high debt-to-equity ratio warrants caution. The events industry's recovery post-pandemic is a tailwind, but macroeconomic uncertainties could impact discretionary spending on large-scale events.
GL Events SA holds a competitive edge through its vertically integrated model, combining venue ownership with event management services. This allows the company to capture value across the event lifecycle, from planning to execution. Its portfolio of 50 owned or managed venues provides a stable revenue base, reducing reliance on third-party facilities. The company’s specialization in niche trade shows (e.g., food, textiles) differentiates it from generalist competitors. However, GL Events faces intense competition from global players with broader geographic reach and larger-scale venues. Its focus on the European market (particularly France) limits exposure to high-growth regions like Asia and North America. The company’s debt load is a relative weakness compared to peers with stronger balance sheets, potentially constraining expansion opportunities. Its subsidiary structure under Polygone SA adds complexity but may offer strategic synergies in certain markets.