Isra Vision AG (ETR:ISR), which is in the electronic business, and is based in Germany, received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €41.2 at one point, and dropping to the lows of €30.22. 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 Isra Vision's current trading price of €30.22 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 Isra Vision’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 Isra Vision
Is Isra Vision still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14.71% above my intrinsic value, which means if you buy Isra Vision today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €26.34, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Isra Vision’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Isra Vision look like?
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. Isra Vision’s earnings over the next few years are expected to increase by 39%, 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? ISR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?