What Does Rosenbauer International AG's (VIE:ROS) Share Price Indicate?
Rosenbauer International AG (VIE:ROS), which is in the machinery business, and is based in Austria, led the WBAG gainers with a relatively large price hike in the past couple of weeks. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Rosenbauer International’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Rosenbauer International
What is Rosenbauer International worth?
Great news for investors – Rosenbauer International is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €41.77, but it is currently trading at €32.00 on the share market, meaning that there is still an opportunity to buy now. However, given that Rosenbauer International’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.
What does the future of Rosenbauer International 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 2.5% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Rosenbauer International, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since ROS 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ROS 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 ROS. 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 Rosenbauer International. You can find everything you need to know about Rosenbauer International in the latest infographic research report. If you are no longer interested in Rosenbauer International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
