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Is It Time To Consider Buying Österreichische Post AG (VIE:POST)?

Simply Wall St

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Österreichische Post AG (VIE:POST), which is in the logistics business, and is based in Austria, saw significant share price movement during recent months on the WBAG, rising to highs of €38.35 and falling to the lows of €29.85. 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 Österreichische Post's current trading price of €30.4 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Österreichische Post’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 Österreichische Post

What is Österreichische Post worth?

Great news for investors – Österreichische Post is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €45.7, but it is currently trading at €30.40 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Österreichische Post’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Österreichische Post?

WBAG:POST Past and Future Earnings, June 16th 2019

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. Österreichische Post’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since POST is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 POST for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy POST. 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 buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Österreichische Post. You can find everything you need to know about Österreichische Post in the latest infographic research report. If you are no longer interested in Österreichische Post, 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 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. Thank you for reading.