Is Now The Time To Look At Buying Bucher Industries AG (VTX:BUCN)?

Bucher Industries AG (VTX:BUCN), might not be a large cap stock, but it saw significant share price movement during recent months on the SWX, rising to highs of CHF505 and falling to the lows of CHF456. 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 Bucher Industries' current trading price of CHF467 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 Bucher Industries’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 Bucher Industries

What is Bucher Industries worth?

According to my valuation model, Bucher Industries seems to be fairly priced at around 2.6% below my intrinsic value, which means if you buy Bucher Industries today, you’d be paying a fair price for it. And if you believe the company’s true value is CHF478.98, then there’s not much of an upside to gain from mispricing.

Can we expect growth from Bucher Industries?

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 grow by 30% over the next couple of years, the future seems bright for Bucher Industries. 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 BUCN’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on BUCN, 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.

It can be quite valuable to consider what analysts expect for Bucher Industries from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

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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.
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