In This Article:
While LPKF Laser & Electronics SE (ETR:LPK) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the XTRA. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine LPKF Laser & Electronics’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
We check all companies for important risks. See what we found for LPKF Laser & Electronics in our free report.
What Is LPKF Laser & Electronics Worth?
According to our valuation model, LPKF Laser & Electronics seems to be fairly priced at around 17.70% above our intrinsic value, which means if you buy LPKF Laser & Electronics today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €7.34, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since LPKF Laser & Electronics’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.
Check out our latest analysis for LPKF Laser & Electronics
What kind of growth will LPKF Laser & Electronics 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. In LPKF Laser & Electronics' case, its revenues over the next few years are expected to grow by 43%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? LPK’s optimistic future growth appears to have been factored into the current share price, 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 conviction to buy should the price fluctuates below the true value?