Piraeus Port Authority SA. (ATSE:PPA), a infrastructure company based in Greece, saw significant share price volatility over the past couple of months on the ATSE, rising to the highs of €17.6 and falling to the lows of €15.5. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Piraeus Port Authority’s current trading price of €16.52 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 Piraeus Port Authority’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Piraeus Port Authority
What is Piraeus Port Authority worth?
Good news, investors! Piraeus Port Authority is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €23.51, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Piraeus Port Authority’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Piraeus Port Authority?
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. However, with a relatively muted revenue growth of 5.92% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Piraeus Port Authority.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since PPA is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 PPA for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PPA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Piraeus Port Authority. You can find everything you need to know about Piraeus Port Authority in the latest infographic research report. If you are no longer interested in Piraeus Port Authority, 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.