Accor SA (EPA:AC) received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €42.25 at one point, and dropping to the lows of €36.85. 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 Accor's current trading price of €38.50 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Accor’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Accor

What is Accor worth?

According to my valuation model, Accor seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Accor today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €44.24, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Accor’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Accor look like?

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. 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. With profit expected to grow by 32% over the next couple of years, the future seems bright for Accor. 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 already priced in AC’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on AC, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.