At €21.35, Is IMMOFINANZ AG (VIE:IIA) Worth Looking At Closely?

While IMMOFINANZ AG (VIE:IIA) might not have the largest market cap around , it saw a decent share price growth of 17% on the WBAG over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. As a €2.9b market cap stock, it seems odd IMMOFINANZ is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Today we will analyse the most recent data on IMMOFINANZ’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for IMMOFINANZ

What Is IMMOFINANZ Worth?

According to our valuation model, IMMOFINANZ seems to be fairly priced at around 12% below our intrinsic value, which means if you buy IMMOFINANZ today, you’d be paying a fair price for it. And if you believe the company’s true value is €24.15, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since IMMOFINANZ’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.

Can we expect growth from IMMOFINANZ?

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. With revenues expected to grow by 68% over the next couple of years, the future seems bright for IMMOFINANZ. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in IIA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on IIA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into IMMOFINANZ, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for IMMOFINANZ you should know about.

If you are no longer interested in IMMOFINANZ, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.