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ASM International NV (AMS:ASM) received a lot of attention from a substantial price movement on the ENXTAM over the last few months, increasing to €615 at one point, and dropping to the lows of €491. 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 ASM International's current trading price of €505 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ASM International’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 ASM International
Is ASM International Still Cheap?
According to our valuation model, ASM International seems to be fairly priced at around 12.98% above our intrinsic value, which means if you buy ASM International today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €446.64, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because ASM International’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 does the future of ASM International look like?
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. With profit expected to more than double over the next couple of years, the future seems bright for ASM International. 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? It seems like the market has already priced in ASM’s positive outlook, 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?