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Vienna Insurance Group AG (VIE:VIG), which is in the insurance business, and is based in Austria, saw significant share price movement during recent months on the WBAG, rising to highs of €25.35 and falling to the lows of €21.14. 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 Vienna Insurance Group's current trading price of €22.5 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 Vienna Insurance Group’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 Vienna Insurance Group
Is Vienna Insurance Group still cheap?
Good news, investors! Vienna Insurance Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is €39.48, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Vienna Insurance Group’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 kind of growth will Vienna Insurance Group generate?
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. 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. With profit expected to grow by 28% over the next couple of years, the future seems bright for Vienna Insurance Group. 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? Since VIG is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.