Pargesa Holding SA (SWX:PARG), a diversified financial company based in Switzerland, received a lot of attention from a substantial price movement on the SWX in the over the last few months, increasing to CHF88.6 at one point, and dropping to the lows of CHF79.55. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Pargesa Holding’s current trading price of CHF84.7 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Pargesa Holding’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 Pargesa Holding

Is Pargesa Holding still cheap?

According to my valuation model, Pargesa Holding seems to be fairly priced at around 17% above my intrinsic value, which means if you buy Pargesa Holding today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth CHF72.56, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like Pargesa Holding’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Pargesa Holding 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. However, with a relatively muted profit growth of 2.86% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Pargesa Holding, at least in the short term.

What this means for you:

Are you a shareholder? PARG’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on PARG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Pargesa Holding. You can find everything you need to know about Pargesa Holding in the latest infographic research report. If you are no longer interested in Pargesa Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.