Today we're going to take a look at the well-established Exor N.V. (BIT:EXO). The company's stock received a lot of attention from a substantial price movement on the BIT over the last few months, increasing to €64.90 at one point, and dropping to the lows of €57.16. 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 Exor's current trading price of €61.60 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Exor’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Exor worth?
The stock is currently trading at €61.60 on the share market, which means it is overvalued by 34% compared to my intrinsic value of €45.81. This means that the opportunity to buy Exor at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Exor’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 kind of growth will Exor generate?
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 revenue growth of 8.3% expected in the upcoming year, short term growth doesn’t seem like a key driver for a buy decision for Exor.
What this means for you:
Are you a shareholder? EXO’s future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe EXO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. 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 EXO for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Exor. You can find everything you need to know about Exor in the latest infographic research report. If you are no longer interested in Exor, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.