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WashTec AG (ETR:WSU), might not be a large cap stock, but it saw its share price hover around a small range of €37.00 to €40.60 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at WashTec’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for WashTec
Is WashTec Still Cheap?
Good news, investors! WashTec is still a bargain right now. According to our valuation, the intrinsic value for the stock is €63.03, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. WashTec’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What does the future of WashTec 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. WashTec's earnings over the next few years are expected to increase by 33%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since WSU 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on WSU for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WSU. 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 buy.
If you'd like to know more about WashTec as a business, it's important to be aware of any risks it's facing. For example - WashTec has 2 warning signs we think you should be aware of.