Salini Impregilo SpA (BIT:SAL), which is in the construction 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 €2.46 at one point, and dropping to the lows of €1.75. 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 Salini Impregilo’s current trading price of €1.85 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 Salini Impregilo’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Salini Impregilo still cheap?
Good news, investors! Salini Impregilo is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €2.56, but it is currently trading at €1.85 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 Salini Impregilo’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 Salini Impregilo look like?
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. 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. With revenues expected to grow by a double-digit 28% over the next couple of years, the outlook is positive for Salini Impregilo. If the level of expenses is able to be maintained, 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? Since SAL is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 SAL for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SAL. 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 Salini Impregilo. You can find everything you need to know about Salini Impregilo in the latest infographic research report. If you are no longer interested in Salini Impregilo, 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 firstname.lastname@example.org.