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COLTENE Holding AG (VTX:CLTN), which is in the medical equipment business, and is based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF102.8 at one point, and dropping to the lows of CHF86.7. 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 COLTENE Holding's current trading price of CHF88.1 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 COLTENE Holding’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 COLTENE Holding
What is COLTENE Holding worth?
According to my valuation model, COLTENE Holding seems to be fairly priced at around 12% below my intrinsic value, which means if you buy COLTENE Holding today, you’d be paying a fair price for it. And if you believe the company’s true value is CHF100.38, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, COLTENE Holding has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from COLTENE Holding?
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. 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. With profit expected to more than double over the next couple of years, the future seems bright for COLTENE Holding. 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 CLTN’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 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?
Are you a potential investor? If you’ve been keeping tabs on CLTN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which 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.