At €5.71, Is Cliq Digital AG (ETR:CLIQ) Worth Looking At Closely?

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Cliq Digital AG (ETR:CLIQ), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €7.41 at one point, and dropping to the lows of €5.44. 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 Cliq Digital's current trading price of €5.71 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Cliq Digital’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 Cliq Digital

Is Cliq Digital Still Cheap?

Good news, investors! Cliq Digital is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 2.07x is currently well-below the industry average of 25.86x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Cliq Digital’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.

Can we expect growth from Cliq Digital?

earnings-and-revenue-growth
XTRA:CLIQ Earnings and Revenue Growth November 1st 2024

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. However, with a relatively muted profit growth of 9.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Cliq Digital, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since CLIQ is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on CLIQ for a while, now might be the time to make a leap. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CLIQ. 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.