Making NVDIA look pale

European defence stocks were again on fire yesterday after the Selensky/Trump clash over the weekend. As per Monday market close, share prices of the main defence companies are up this year between a stunning 40% for BAE Systems and 86% for Rheinmetall. The stock price of the latter is up 14 times over the last 5 years. The company trades at 55 times 2025e earnings and is estimated to grow its earnings by 57% yearly over the next 5 years, making companies in AI like NVDIA looking pale. At ECP, we continue to favour Dassault Aviation (3.2% in our SSF-European Value Fund), which we believe is still undervalued despite a 44% YTD rise. Its €22.4bn market cap includes a €11.8bn Thales stake and €1.5bn in cash, valuing its core business at just €9.1bn. With €6bn sales and a seven-year order book, it's well-managed.