In This Article:
SÜSS MicroTec SE (ETR:SMHN), might not be a large cap stock, but it saw significant share price movement during recent months on the XTRA, rising to highs of €56.10 and falling to the lows of €39.80. 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 SÜSS MicroTec's current trading price of €41.30 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at SÜSS MicroTec’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for SÜSS MicroTec
Is SÜSS MicroTec Still Cheap?
The stock is currently trading at €41.30 on the share market, which means it is overvalued by 26% compared to our intrinsic value of €32.85. This means that the opportunity to buy SÜSS MicroTec 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. Since SÜSS MicroTec’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will SÜSS MicroTec generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. SÜSS MicroTec's earnings over the next few years are expected to increase by 61%, 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? It seems like the market has well and truly priced in SMHN’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe SMHN 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 SMHN 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 is encouraging for SMHN, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.