Should You Think About Buying Greenyard NV (EBR:GREEN) Now?

Greenyard NV (EBR:GREEN), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the ENXTBR. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Greenyard’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Greenyard

What Is Greenyard Worth?

The stock is currently trading at €6.70 on the share market, which means it is overvalued by 25% compared to my intrinsic value of €5.37. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since Greenyard’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 does the future of Greenyard look like?

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. With profit expected to more than double over the next couple of years, the future seems bright for Greenyard. 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 well and truly priced in GREEN’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 GREEN 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 an eye on GREEN for a while, 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 positive outlook is encouraging for GREEN, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Greenyard as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with Greenyard (including 1 which makes us a bit uncomfortable).

If you are no longer interested in Greenyard, 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.