Stock Analysis

Is There Now An Opportunity In PUMA SE (ETR:PUM)?

XTRA:PUM
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PUMA SE (ETR:PUM) saw a significant share price rise of over 20% in the past couple of months on the XTRA. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine PUMA’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for PUMA

Is PUMA Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.12% above my intrinsic value, which means if you buy PUMA today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth €59.42, there’s only an insignificant downside when the price falls to its real value. What's more, PUMA’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from PUMA?

earnings-and-revenue-growth
XTRA:PUM Earnings and Revenue Growth February 6th 2023

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. 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 profit expected to grow by 44% over the next couple of years, the future seems bright for PUMA. 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? It seems like the market has already priced in PUM’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 track record of its management team. 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 PUM, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecasts for PUMA mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

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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.