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Is It The Right Time To Buy Bollore (EPA:BOL)?

Bollore (EPA:BOL) saw significant share price volatility over the past couple of months on the ENXTPA, rising to the highs of €4.5 and falling to the lows of €4.03. 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 Bollore’s current trading price of €4.16 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 Bollore’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Bollore

What’s the opportunity in Bollore?

Bollore appears to be overvalued by 84.4% at the moment, based on my discounted cash flow valuation. The stock is currently priced at €4.16 on the market compared to my intrinsic value of €2.26. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Bollore’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.

What kind of growth will Bollore generate?

ENXTPA:BOL Future Profit June 21st 18
ENXTPA:BOL Future Profit June 21st 18

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. Bollore’s earnings over the next few years are expected to increase by 25.69%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in BOL’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe BOL 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 BOL 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 BOL, 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 Bollore. You can find everything you need to know about Bollore in the latest infographic research report. If you are no longer interested in Bollore, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass 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.

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