Is It Time To Consider Buying Daimler Truck Holding AG (ETR:DTG)?

Let's talk about the popular Daimler Truck Holding AG (ETR:DTG). The company's shares received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €41.62 at one point, and dropping to the lows of €33.88. 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 Daimler Truck Holding's current trading price of €37.04 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 Daimler Truck Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is Daimler Truck Holding Worth?

Great news for investors – Daimler Truck Holding is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €61.48, but it is currently trading at €37.04 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Daimler Truck Holding’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.

Check out our latest analysis for Daimler Truck Holding

Can we expect growth from Daimler Truck Holding?

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. Daimler Truck Holding's earnings over the next few years are expected to increase by 63%, 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? Since DTG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

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

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for Daimler Truck Holding and we think they deserve your attention.

If you are no longer interested in Daimler Truck Holding, 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.