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Is There Now An Opportunity In Juventus Football Club S.p.A. (BIT:JUVE)?

Simply Wall St

Juventus Football Club S.p.A. (BIT:JUVE), which is in the entertainment business, and is based in Italy, saw significant share price movement during recent months on the BIT, rising to highs of €1.52 and falling to the lows of €1.26. 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 Juventus Football Club's current trading price of €1.26 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 Juventus Football Club’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Juventus Football Club

What's the opportunity in Juventus Football Club?

The stock is currently trading at €1.26 on the share market, which means it is overvalued by 50% compared to my intrinsic value of €0.84. This means that the opportunity to buy Juventus Football Club 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. Since Juventus Football Club’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Juventus Football Club?

BIT:JUVE Past and Future Earnings, December 4th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 37% over the next couple of years, the future seems bright for Juventus Football Club. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in JUVE’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe JUVE 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 JUVE 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 is encouraging for JUVE, which 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 Juventus Football Club. You can find everything you need to know about Juventus Football Club in the latest infographic research report. If you are no longer interested in Juventus Football Club, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.