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TAKKT AG (ETR:TTK), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €11.06 at one point, and dropping to the lows of €8.49. 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 TAKKT's current trading price of €8.59 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 TAKKT’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 TAKKT
Is TAKKT Still Cheap?
According to our valuation model, TAKKT seems to be fairly priced at around 2.7% below our intrinsic value, which means if you buy TAKKT today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €8.83, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because TAKKT’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.
Can we expect growth from TAKKT?
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 5.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for TAKKT, at least in the short term.
What This Means For You
Are you a shareholder? It seems like the market has already priced in TTK’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 TTK, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.