At €34.84, Is It Time To Put Dürr Aktiengesellschaft (ETR:DUE) On Your Watch List?

Dürr Aktiengesellschaft (ETR:DUE), is not the largest company out there, but it saw significant share price movement during recent months on the XTRA, rising to highs of €37.02 and falling to the lows of €31.84. 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 Dürr's current trading price of €34.84 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 Dürr’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Dürr

Is Dürr still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.00% above my intrinsic value, which means if you buy Dürr today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €34.50, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Dürr’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 kind of growth will Dürr generate?

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. With revenues expected to grow by a double-digit 28% over the next couple of years, the outlook is positive for Dürr. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? DUE’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on DUE, 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. While conducting our analysis, we found that Dürr has 1 warning sign and it would be unwise to ignore it.

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This article by Simply Wall St is general in nature. 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.
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