Should You Investigate Palfinger AG (VIE:PAL) At €25.90?

While Palfinger AG (VIE:PAL) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the WBAG. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Palfinger’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Palfinger

What is Palfinger worth?

Great news for investors – Palfinger is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €36.45, but it is currently trading at €25.90 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Palfinger’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 Palfinger 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. Palfinger's earnings over the next few years are expected to increase by 70%, 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? Since PAL is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on PAL for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PAL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you want to dive deeper into Palfinger, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Palfinger and you'll want to know about these.

If you are no longer interested in Palfinger, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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