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Indel B S.p.A. (BIT:INDB), which is in the consumer durables business, and is based in Italy, saw significant share price movement during recent months on the BIT, rising to highs of €23.7 and falling to the lows of €20.7. 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 Indel B's current trading price of €22.5 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 Indel B’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 Indel B
What is Indel B worth?
Indel B appears to be overvalued by 32.1% at the moment, based on my discounted cash flow valuation. The stock is currently priced at €22.50 on the market compared to my intrinsic value of €17.03. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since Indel B’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 Indel B?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 profit expected to grow by 42% over the next couple of years, the future seems bright for Indel B. 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 INDB’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 INDB 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 tabs on INDB for some time, 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 INDB, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.