At CHF170, Is Tecan Group AG (VTX:TECN) Worth Looking At Closely?

While Tecan Group AG (VTX:TECN) might not have the largest market cap around , it saw a significant share price rise of 21% in the past couple of months on the SWX. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Tecan Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In Tecan Group?

According to our valuation model, Tecan Group seems to be fairly priced at around 17% below our intrinsic value, which means if you buy Tecan Group today, you’d be paying a reasonable price for it. And if you believe the company’s true value is CHF204.60, then there’s not much of an upside to gain from mispricing. In addition to this, Tecan Group has a low beta, which suggests its share price is less volatile than the wider market.

View our latest analysis for Tecan Group

What does the future of Tecan Group look like?

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. Tecan Group's earnings over the next few years are expected to increase by 90%, 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? It seems like the market has already priced in TECN’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 TECN, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Tecan Group.

If you are no longer interested in Tecan Group, 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.