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BioDue S.p.A. (BIT:BIO2), which is in the personal products business, and is based in Italy, saw significant share price movement during recent months on the BIT, rising to highs of €5.5 and falling to the lows of €4.94. 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 BioDue's current trading price of €5.36 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 BioDue’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 BioDue

What's the opportunity in BioDue?

Great news for investors – BioDue is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €7.53, but it is currently trading at €5.36 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because BioDue’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 BioDue 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. BioDue’s earnings over the next few years are expected to increase by 69%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since BIO2 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.

Are you a potential investor? If you’ve been keeping an eye on BIO2 for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BIO2. 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 buy.