At CHF059.04, Is It Time To Buy Julius Baer Group Ltd (VTX:BAER)?

Julius Baer Group Ltd (VTX:BAER) received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF63.16 at one point, and dropping to the lows of CHF57.06. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Julius Baer Group's current trading price of CHF59.04 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Julius Baer Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Julius Baer Group

Is Julius Baer Group still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19.9% above my intrinsic value, which means if you buy Julius Baer Group today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is CHF49.24, there’s only an insignificant downside when the price falls to its real value. Furthermore, Julius Baer Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What kind of growth will Julius Baer Group 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. 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. Julius Baer Group’s earnings over the next few years are expected to increase by 56.22%, 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? BAER’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 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 tabs on BAER, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Julius Baer Group. You can find everything you need to know about Julius Baer Group in the latest infographic research report. If you are no longer interested in Julius Baer Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.