Advertisement
U.S. markets open in 4 hours 54 minutes
  • S&P Futures

    4,587.50
    -13.25 (-0.29%)
     
  • Dow Futures

    36,220.00
    -83.00 (-0.23%)
     
  • Nasdaq Futures

    15,971.25
    -52.50 (-0.33%)
     
  • Russell 2000 Futures

    1,864.30
    -1.40 (-0.08%)
     
  • Crude Oil

    72.97
    -1.10 (-1.49%)
     
  • Gold

    2,091.00
    +1.30 (+0.06%)
     
  • Silver

    25.58
    -0.27 (-1.05%)
     
  • EUR/USD

    1.0878
    -0.0007 (-0.07%)
     
  • 10-Yr Bond

    4.2260
    0.0000 (0.00%)
     
  • Vix

    13.24
    +0.61 (+4.83%)
     
  • GBP/USD

    1.2675
    -0.0039 (-0.31%)
     
  • USD/JPY

    146.6240
    -0.1370 (-0.09%)
     
  • Bitcoin USD

    41,704.76
    +2,270.00 (+5.76%)
     
  • CMC Crypto 200

    862.42
    +70.86 (+8.95%)
     
  • FTSE 100

    7,486.17
    -43.18 (-0.57%)
     
  • Nikkei 225

    33,231.27
    -200.24 (-0.60%)
     

Is Nabaltec AG (ETR:NTG) Potentially Undervalued?

While Nabaltec AG (ETR:NTG) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the XTRA, rising to highs of €21.20 and falling to the lows of €17.35. 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 Nabaltec's current trading price of €17.40 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 Nabaltec’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Nabaltec

Is Nabaltec Still Cheap?

Good news, investors! Nabaltec is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €21.96, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Nabaltec’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 Nabaltec generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

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 negative profit growth of -13% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Nabaltec. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although NTG is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to NTG, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on NTG for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 1 warning sign for Nabaltec you should know about.

If you are no longer interested in Nabaltec, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Advertisement