Is Now The Time To Look At Buying Rosenbauer International AG (VIE:ROS)?

Rosenbauer International AG (VIE:ROS), is not the largest company out there, but it received a lot of attention from a substantial price increase on the WBAG over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Rosenbauer International’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Rosenbauer International

What is Rosenbauer International worth?

Great news for investors – Rosenbauer International is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €63.17, but it is currently trading at €47.50 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Rosenbauer International’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 kind of growth will Rosenbauer International generate?

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. However, with a relatively muted profit growth of 3.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Rosenbauer International, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since ROS is currently undervalued, it may be a great time to increase your holdings in the stock. 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 ROS for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ROS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Rosenbauer International, you'd also look into what risks it is currently facing. Our analysis shows 3 warning signs for Rosenbauer International (1 is significant!) and we strongly recommend you look at them before investing.

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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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