Eureka Case 25 min Finance

Why 7.2 Times?

You are Hélène Bastide, chief financial officer of Lumiform S.A., a Lyon maker of specialty materials listed on Euronext Paris. An institutional fund has just published that your shares are worth 20% less than they should be, and before you propose any change you have to decide what you believe is holding the multiple down: it is the diagnosis you will take to the board this week.

The situation

Lumiform turns over €480 million a year, earns €76 million of EBITDA — about 16% of sales — and employs some 2,300 people at plants in France, Spain and Poland. It trades on the standard segment of Euronext Paris at 7.2 times enterprise value to EBITDA. Its competitors trade at 9.0 times. Each turn of multiple, on your EBITDA, is about €76 million of enterprise value.

On Monday, 11 May 2026, a fund with a record of public campaigns published nine pages on Lumiform. Its thesis: the gap does not come from the plants but from how hard and costly the shares are to buy — on average €1.1 million trades a day, at a bid-ask spread of 65 basis points — and from a structure in which the founding family holds 28% of the capital with double voting rights. Institutions hold 31%; the rest is in retail hands. A single analyst covers the stock. There is no investor-relations function: your finance team keeps the share register.

At midday the registrar called: a holder linked to the family might sell 9% of the capital, about €39 million, and wants an answer within the quarter. The annual general meeting is ten weeks away and the fund wants to meet before it. Your long-term incentive is paid in Lumiform shares, and you have twice raised with the board how thin the register is; both times you were asked to keep the meeting on margin.

Your job in this case: look at the figures for the multiple, the register and the trading, work out what the gap is worth and what it costs to move the shares, and decide which cause of the discount you will argue to the board.

The decision

Which cause of the discount do you put to the board?

  • A · The operating story is undervalued
  • B · It is the mid-cap market, not Lumiform
  • C · Thin trading and the double votes

The rest of the case is locked

The data, the calculations, the decision itself and what happens next open with your institution's access code.

Have an access code?

No code yet?

Instructors can request access for a course. Tell us who you are and which course it is for, and we will send your institution a code.

Run it live in class: every student decides and justifies, and the whole class sees how it splits. How Eureka Case works →