Azimut Holding S.p.A. (BIT:AZM), which is in the capital markets business, and is based in Italy, received a lot of attention from a substantial price movement on the BIT over the last few months, increasing to €14.01 at one point, and dropping to the lows of €10.35. 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 Azimut Holding’s current trading price of €10.52 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 Azimut Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Azimut Holding worth?
Good news, investors! Azimut Holding is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €16.49, but it is currently trading at €10.52 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 Azimut Holding’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 does the future of Azimut Holding look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted profit growth of 8.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Azimut Holding, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since AZM 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 AZM for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AZM. 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 Azimut Holding. You can find everything you need to know about Azimut Holding in the latest infographic research report. If you are no longer interested in Azimut Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past 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. For errors that warrant correction please contact the editor at email@example.com.