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While Knaus Tabbert AG (ETR:KTA) might not have the largest market cap around , it led the XTRA gainers with a relatively large price hike in the past couple of weeks. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Knaus Tabbert’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Knaus Tabbert
What Is Knaus Tabbert Worth?
Knaus Tabbert is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Knaus Tabbert’s ratio of 8.19x is above its peer average of 5.43x, which suggests the stock is trading at a higher price compared to the Auto industry. But, is there another opportunity to buy low in the future? Given that Knaus Tabbert’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Knaus Tabbert look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 16% over the next couple of years, the outlook is positive for Knaus Tabbert. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? It seems like the market has well and truly priced in KTA’s positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe KTA should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.