Let's talk about the popular Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW). The company's shares received a lot of attention from a substantial price increase on the XTRA over the last few months. 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 large-cap 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 Bayerische Motoren Werke’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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Is Bayerische Motoren Werke Still Cheap?

Great news for investors – Bayerische Motoren Werke is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is €125.65, but it is currently trading at €77.14 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Bayerische Motoren Werke’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Check out our latest analysis for Bayerische Motoren Werke

What kind of growth will Bayerische Motoren Werke generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Bayerische Motoren Werke'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 BMW 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.