At €13.60, Is Knaus Tabbert AG (ETR:KTA) Worth Looking At Closely?

While Knaus Tabbert AG (ETR:KTA) might not have the largest market cap around , it saw a decent share price growth of 19% on the XTRA over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on Knaus Tabbert’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Knaus Tabbert

What's The Opportunity In Knaus Tabbert?

According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Knaus Tabbert’s ratio of 7.8x is above its peer average of 5.41x, which suggests the stock is trading at a higher price compared to the Auto industry. But, is there another opportunity to buy low in the future? Since Knaus Tabbert’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Knaus Tabbert 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. Knaus Tabbert's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in KTA’s positive outlook, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe KTA should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on KTA for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for KTA, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Knaus Tabbert as a business, it's important to be aware of any risks it's facing. Be aware that Knaus Tabbert is showing 4 warning signs in our investment analysis and 2 of those are concerning...

If you are no longer interested in Knaus Tabbert, 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.