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Nordex SE (ETR:NDX1), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €14.02 at one point, and dropping to the lows of €10.81. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Nordex's current trading price of €10.93 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nordex’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Nordex
What's The Opportunity In Nordex?
Good news, investors! Nordex is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €15.06, but it is currently trading at €10.93 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Nordex’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Nordex look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Nordex's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since NDX1 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NDX1 for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NDX1. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.