Meier Tobler Group AG (SWX:MTG), a machinery company based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF42.35 at one point, and dropping to the lows of CHF31.15. 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 Meier Tobler Group’s current trading price of CHF32.1 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 Meier Tobler Group’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 Meier Tobler Group
What is Meier Tobler Group worth?
According to my valuation model, the stock is currently overvalued by about 20%, trading at CHF32.10 compared to my intrinsic value of CHF26.67. This means that the buying opportunity has probably disappeared for now. In addition to this, it seems like Meier Tobler Group’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Meier Tobler Group generate?
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. Meier Tobler Group’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to 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 MTG’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 MTG 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 MTG 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 optimistic prospect is encouraging for MTG, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.