Should You Investigate Bucher Industries AG (VTX:BUCN) At CHF477?

Bucher Industries AG (VTX:BUCN), is not the largest company out there, but it saw significant share price movement during recent months on the SWX, rising to highs of CHF504 and falling to the lows of CHF449. 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 CHF477 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?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 15.13% above my intrinsic value, which means if you buy Bucher Industries today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is CHF414.30, there’s only an insignificant downside when the price falls to its real value. In addition to this, Bucher Industries has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Bucher Industries 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. Bucher Industries' earnings over the next few years are expected to increase by 87%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? BUCN’s optimistic 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on BUCN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Bucher Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

When trading Bucher Industries or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.