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Evonik Industries AG (ETR:EVK), might not be a large cap stock, but it saw significant share price movement during recent months on the XTRA, rising to highs of €20.71 and falling to the lows of €16.98. 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 Evonik Industries' current trading price of €18.52 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 Evonik Industries’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 Evonik Industries
What Is Evonik Industries Worth?
Good news, investors! Evonik Industries is still a bargain right now. According to our valuation, the intrinsic value for the stock is €26.08, but it is currently trading at €18.52 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Evonik Industries’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.
Can we expect growth from Evonik Industries?
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. Though in the case of Evonik Industries, it is expected to deliver a relatively unexciting top-line growth of 8.2% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since EVK is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on EVK for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EVK. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.