Hey Investor, Welcome to Weekly Picks, where each week our analysts handpick their favorite Narratives.
Narratives are a game-changing way for investors to make smarter decisions on their stocks. A narrative always has 3 parts: a story, a forecast and a fair value. You can create one yourself in 3 minutes or you can select one from our thriving community.
This week’s picks cover: 🎮 Why Ubisoft’s beaten-down share price doesn't reflect what its assets are really worth. 👜 How LVMH keeps turning famous luxury brands into a steady long-term money maker. 🔍 Why Alphabet is no longer an easy win and now needs to prove it can deliver results. |
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Is Ubisoft the Market’s Biggest Pricing Error? Why Forensic Value Points to €33 Per Share |
Ubisoft’s share price has fallen sharply after project cancellations, losses, and a major reset of the business. But beneath the problems, the company still owns valuable game franchises and technology. A recent investment by Tencent suggests these assets may be worth far more than the market currently believes. That makes Ubisoft a risky investment, but one with potential upside if management succeeds in unlocking that value. | |
| ~88% undervalued vs current price |
Based on ~14% p.a. revenue growth for 5 years | | |
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💡 Why we like it: This is a strong example of asset-based investing, shifting the focus away from earnings fears to what Ubisoft’s assets are actually worth today. By using a forensic sum-of-the-parts approach, anchored by real transactions like Tencent’s investment, it challenges the market price with hard numbers. For investors, it’s compelling because it clearly separates sentiment risk from underlying asset value. |
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EU#4 - Turning Heritage into the World’s Strongest Luxury Empire |
LVMH has built a powerful business by owning some of the world’s most desirable luxury brands and running them with patience and discipline. It lets brands stay creative while using its size to control costs, distribution, and pricing. This approach helps LVMH stay strong even when the economy slows. For investors, it offers steady long-term growth rather than quick wins. |
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~29% undervalued vs current price |
Based on 7% p.a. revenue growth for 5 years | | |
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💡 Why we like it: This narrative stands out by explaining why LVMH’s structure is so difficult to replicate, not just listing brands or financials. It clearly connects creativity, capital discipline, and pricing power into a long-term compounding story. Investors benefit from a rare long-horizon view of LVMH as luxury infrastructure rather than just a cyclical fashion trade. |
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The "Easy Money" Is Gone: Why Alphabet Is Now a "Show Me" Story |
Alphabet is still a very strong business, but the days of the stock feeling like an obvious bargain are over. Search and YouTube continue to generate huge amounts of cash, which the company is using to fund AI and cloud growth. The question for investors is whether these big investments will lead to faster growth and better returns. Going forward, Alphabet’s share price is likely to depend more on results than on hype. |
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| ~11% undervalued vs current price |
Based on ~11.7% p.a. revenue growth for 5 years |
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💡 Why we like it: This narrative does a great job reframing Alphabet from a headline-driven AI panic into an execution-focused investment case. It breaks the business into understandable engines (Search & YouTube, Cloud, and Waymo) and shows how they support the valuation today. For investors, it’s useful because it explains what needs to go right from here, not just why the stock worked in the past. |
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What's next?
1. 🔔 Know when to act: Set the narrative valuations as your own fair value to know when to buy, hold or sell the stock.
2. 🤔 Get answers: Ask the author any questions in the comments section. Feel free to like as well to support their work.
3. ✨ Discover more Narratives: There are hundreds of other insightful stock narratives on our Community page.
4. ✍️ Build an audience: Have your narrative seen by millions of investors, simply meet our Featuring criteria to go into the running! |
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| This email is from Simply Wall Street Pty Ltd
Level 5, 320 Pitt St Sydney 2000, NSW, Australia. Simply Wall St has no position in the company(s) mentioned. These narratives are general in nature and explore scenarios and estimates created by the authors. These narratives do not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company’s future performance and are exploratory in the ideas they cover. The fair value estimates are for informational purposes only and do not constitute a recommendation to buy or sell any stock. They do not take into account your objectives or financial situation. Note that the author’s analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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