Is It Too Late To Buy Koninklijke Ahold Delhaize NV. (AMS:AD)?
Koninklijke Ahold Delhaize NV. (ENXTAM:AD) saw significant share price volatility over the past couple of months on the ENXTAM, rising to the highs of €19.78 and falling to the lows of €17.26. 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 Koninklijke Ahold Delhaize’s current trading price of €18.83 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 Koninklijke Ahold Delhaize’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 Koninklijke Ahold Delhaize
What is Koninklijke Ahold Delhaize worth?
According to my valuation model, Koninklijke Ahold Delhaize seems to be fairly priced at around 15.35% below my intrinsic value, which means if you buy Koninklijke Ahold Delhaize today, you’d be paying a fair price for it. And if you believe that the stock is really worth €22.24, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Koninklijke Ahold Delhaize’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
Can we expect growth from Koninklijke Ahold Delhaize?
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. Though in the case of Koninklijke Ahold Delhaize, it is expected to deliver a relatively unexciting earnings growth of 3.45%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in AD’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on AD, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, 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 Koninklijke Ahold Delhaize. You can find everything you need to know about Koninklijke Ahold Delhaize in the latest infographic research report. If you are no longer interested in Koninklijke Ahold Delhaize, 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.
