Why IMMOFINANZ AG (VIE:IIA) Could Be Worth Watching

While IMMOFINANZ AG (VIE:IIA) might not have the largest market cap around , it saw significant share price movement during recent months on the WBAG, rising to highs of €32.35 and falling to the lows of €15.28. 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 IMMOFINANZ's current trading price of €15.28 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IMMOFINANZ’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for IMMOFINANZ

What's The Opportunity In IMMOFINANZ?

According to our valuation model, IMMOFINANZ seems to be fairly priced at around 0.41% above our intrinsic value, which means if you buy IMMOFINANZ today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth €15.22, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that IMMOFINANZ’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will IMMOFINANZ 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. Though in the case of IMMOFINANZ, it is expected to deliver a relatively unexciting top-line growth of 9.3% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? IIA’s 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 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 positive outlook 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for IMMOFINANZ you should be aware of.

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.