When Should You Buy alstria office REIT-AG (ETR:AOX)?
alstria office REIT-AG (XTRA:AOX), a reits company based in Germany, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of €11.87 to €12.83. However, is this the true valuation level of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at alstria office REIT-AG’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 alstria office REIT-AG
What’s the opportunity in alstria office REIT-AG?
The stock is currently trading at €12.39 on the share market, which means it is overvalued by 20% compared to my intrinsic value of €10.3. This means that the opportunity to buy alstria office REIT-AG at a good price has disappeared! In addition to this, it seems like alstria office REIT-AG’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of alstria office REIT-AG 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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for alstria office REIT-AG, at least in the near future.
What this means for you:
Are you a shareholder? If you believe AOX is currently trading above its value, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on AOX for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on alstria office REIT-AG. You can find everything you need to know about alstria office REIT-AG in the latest infographic research report. If you are no longer interested in alstria office REIT-AG, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
