| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.99 | 171 |
| Intrinsic value (DCF) | 3.96 | -60 |
| Graham-Dodd Method | 1.37 | -86 |
| Graham Formula | n/a |
OVH Groupe S.A. (OVH.PA) is a leading European cloud computing provider, offering a comprehensive suite of public and private cloud, shared hosting, and dedicated server solutions globally. Founded in 1999 and headquartered in Roubaix, France, OVH operates approximately 400,000 servers across 33 data centers, delivering scalable and cost-effective cloud infrastructure. The company's product portfolio includes Bare Metal Cloud for instant server provisioning, Hosted Private Cloud for software-defined data center services, and Public Cloud for shared computing resources. Additionally, OVH provides domain registration, telephony, and internet access services, catering to both individual users and enterprises. As a key player in the Software - Infrastructure sector, OVH emphasizes innovation, sustainability, and data sovereignty, positioning itself as a competitive alternative to US-based cloud giants in the European market. With a strong focus on digital transformation, OVH supports businesses in enhancing their digital journey through reliable and secure cloud solutions.
OVH Groupe S.A. presents a mixed investment profile. On the positive side, the company operates in the high-growth cloud computing sector, with a strong European footprint and a diversified product portfolio. Its revenue of €993 million and operating cash flow of €368 million indicate robust operational performance. However, the company reported a net loss of €10.3 million and negative diluted EPS of €0.05, reflecting ongoing profitability challenges. OVH's high capital expenditures (€343 million) suggest significant reinvestment for growth, but this also pressures free cash flow. The company's beta of 1.107 indicates higher volatility compared to the market. Investors should weigh OVH's growth potential in the European cloud market against its current profitability concerns and competitive pressures from larger global players.
OVH Groupe S.A. competes in the highly competitive cloud infrastructure market, where it differentiates itself through its European focus, cost efficiency, and data sovereignty offerings. Unlike US-based hyperscalers, OVH emphasizes compliance with European data protection regulations (e.g., GDPR), appealing to businesses prioritizing local data storage. The company's vertically integrated model, including ownership of data centers and network infrastructure, allows for cost control and competitive pricing. However, OVH lacks the scale and global reach of hyperscalers like AWS or Microsoft Azure, limiting its ability to compete on breadth of services or advanced AI/ML capabilities. Its strength lies in serving SMEs and mid-market clients in Europe, where it can leverage local expertise and customer support. OVH's competitive positioning is further challenged by the need to continuously invest in technology and infrastructure to keep pace with larger rivals, which may strain its financials. The company's ability to carve out a niche in the European market while fending off competition from both global giants and regional players will be critical to its long-term success.