Stock Analysis & Valuation Wendel (MF.PA)

• Previous Close: €81.30
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	180.68	122
Intrinsic value (DCF)	47.84	-41
Graham-Dodd Method		n/a
Graham Formula	143.65	77

Strategic Investment Analysis

Company Overview

Wendel (MF.PA) is a leading French private equity firm with a rich history dating back to 1704. Specializing in middle-market leveraged buyouts and acquisitions, Wendel invests between €150 million and €500 million in technology services, business services, healthcare, and industrial technology sectors. The firm targets majority or large minority stakes in both listed and unlisted companies across Europe, North America, and Africa, actively participating in governance through board representation. Headquartered in Paris, Wendel operates with a long-term investment horizon, leveraging its deep industry expertise and global network to drive value creation in its portfolio companies. As a publicly traded investment company on Euronext Paris, Wendel offers investors exposure to a diversified portfolio of high-growth businesses while maintaining a disciplined capital allocation strategy.

Investment Summary

Wendel presents an attractive investment proposition for investors seeking exposure to private equity through a liquid, publicly traded vehicle. The firm's diversified portfolio across resilient sectors like healthcare and technology services provides stability, while its active management approach drives operational improvements in portfolio companies. With a market cap of €3.59 billion and a dividend yield of approximately 3.3% (based on €4.7 dividend per share), Wendel offers both growth and income potential. However, investors should consider the inherent risks of private equity investing, including portfolio company performance volatility, high leverage (€6.75 billion debt against €3.43 billion cash), and exposure to economic cycles. The firm's beta of 1.17 suggests slightly higher volatility than the broader market.

Competitive Analysis

Wendel differentiates itself in the competitive private equity landscape through its unique structure as a publicly listed investment company, providing liquidity uncommon in traditional private equity models. The firm's 300+ year history grants it unparalleled experience in long-term value creation and access to proprietary deal flow. Wendel's sector focus on technology services, healthcare, and industrial technology aligns with high-growth areas of the economy, while its middle-market specialization allows it to avoid bidding wars for larger assets. The company's hands-on approach through board participation and operational support creates value beyond financial engineering. Compared to traditional PE firms, Wendel's permanent capital structure eliminates fundraising cycles, allowing for more flexible investment timing. However, its public listing subjects it to quarterly reporting pressures that may conflict with long-term private equity strategies. Wendel's geographic focus on Western Europe (particularly France) provides local market expertise but may limit diversification benefits compared to global peers. The firm's €3.4 billion cash position provides dry powder for opportunistic investments in market dislocations.

Major Competitors

• Kohlberg Kravis Roberts & Co. (KKR): KKR is a global investment giant with $519 billion AUM, significantly larger than Wendel. Its scale provides access to larger deals and diversified strategies but may lack Wendel's middle-market focus and operational intensity. KKR's broader platform includes credit and real assets, offering more diversification but potentially diluting private equity expertise.
• Danone (BN.PA): Incorrect competitor - appears to be a food company rather than private equity. Null entry for accurate comparison.
• Eurazeo (CNDX.PA): Eurazeo is Wendel's closest French peer with €33.5 billion AUM. Both focus on middle-market investments but Eurazeo has stronger exposure to consumer brands and luxury goods. Eurazeo's larger scale may provide better resource allocation but Wendel maintains deeper industrial technology expertise.
• Apollo Global Management (APO): Apollo's $598 billion AUM and strong credit business differentiate it from Wendel's pure equity focus. Apollo's distressed investment expertise provides counter-cyclical opportunities but Wendel's sector specialization in technology and healthcare may offer more consistent growth.
• ICADE (IPR.PA): Incorrect competitor - appears to be a real estate company. Null entry for accurate comparison.
• Tikehau Capital (TEG.PA): Tikehau Capital manages €40.8 billion across private debt, real assets and private equity. Its strong credit platform complements private equity but Wendel's pure-play equity focus allows deeper portfolio company engagement. Both share French middle-market expertise but Tikehau has broader European reach.