While Deutsche EuroShop AG (ETR:DEQ) might not have the largest market cap around , it led the XTRA gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Deutsche EuroShop’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Deutsche EuroShop

Is Deutsche EuroShop Still Cheap?

The stock is currently trading at €23.95 on the share market, which means it is overvalued by 35% compared to our intrinsic value of €17.71. This means that the opportunity to buy Deutsche EuroShop at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Deutsche EuroShop’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.

Can we expect growth from Deutsche EuroShop?

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 revenue growth of 0.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Deutsche EuroShop, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in DEQ’s future outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe DEQ should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on DEQ for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Deutsche EuroShop, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Deutsche EuroShop you should be mindful of and 1 of these shouldn't be ignored.

If you are no longer interested in Deutsche EuroShop, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com