Is Now The Time To Look At Buying Clariant AG (VTX:CLN)?

Clariant AG (VTX:CLN), is not the largest company out there, but it saw significant share price movement during recent months on the SWX, rising to highs of CHF16.18 and falling to the lows of CHF13.92. 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 Clariant's current trading price of CHF13.92 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 Clariant’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 Clariant

What Is Clariant Worth?

Great news for investors – Clariant is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is CHF21.72, but it is currently trading at CHF13.92 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Clariant’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Clariant look like?

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. However, with a relatively muted revenue growth of 4.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Clariant, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since CLN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CLN for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CLN. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. You'd be interested to know, that we found 1 warning sign for Clariant and you'll want to know about this.

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

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

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.