11880 Solutions AG (XTRA:TGT), a commercial services company based in Germany, received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €1.27 at one point, and dropping to the lows of €1.08. 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 11880 Solutions’s current trading price of €1.12 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 11880 Solutions’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for 11880 Solutions
What is 11880 Solutions worth?According to my valuation model, the stock is currently overvalued by about 86.95%, trading at €1.12 compared to my intrinsic value of €0.60. This means that the opportunity to buy 11880 Solutions at a good price has disappeared! But, is there another opportunity to buy low in the future? Since 11880 Solutions’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.
What kind of growth will 11880 Solutions generate?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. In the upcoming year, 11880 Solutions’s earnings are expected to increase by 59.01%, 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? It seems like the market has well and truly priced in TGT’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 TGT 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 TGT 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 optimistic prospect is encouraging for TGT, which means it’s worth diving deeper into other factors 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 11880 Solutions. You can find everything you need to know about 11880 Solutions in the latest infographic research report. If you are no longer interested in 11880 Solutions, you can use our free platform to see my list of over 50 other stocks with a high growth potential.