Aegean Airlines S.A. (ATH:AEGN), which is in the airlines business, and is based in Greece, saw a significant share price rise of over 20% in the past couple of months on the ATSE. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Aegean Airlines’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Aegean Airlines
Is Aegean Airlines still cheap?
Good news, investors! Aegean Airlines is still a bargain right now. According to my valuation, the intrinsic value for the stock is €8.64, but it is currently trading at €4.45 on the share market, meaning that there is still an opportunity to buy now. However, given that Aegean Airlines’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 Aegean Airlines 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. However, with a relatively muted profit growth of 1.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Aegean Airlines, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since AEGN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 AEGN for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AEGN. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Aegean Airlines. You can find everything you need to know about Aegean Airlines in the latest infographic research report. If you are no longer interested in Aegean Airlines, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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