When Should You Buy BASF SE (ETR:BAS)?

Today we're going to take a look at the well-established BASF SE (ETR:BAS). The company's stock saw significant share price movement during recent months on the XTRA, rising to highs of €50.83 and falling to the lows of €42.24. 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 BASF's current trading price of €45.36 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 BASF’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for BASF

What Is BASF Worth?

Great news for investors – BASF is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €67.72, but it is currently trading at €45.36 on the share market, meaning that there is still an opportunity to buy now. However, given that BASF’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from BASF?

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. However, with a relatively muted revenue growth of 0.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for BASF, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since BAS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 BAS for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BAS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. When we did our research, we found 2 warning signs for BASF (1 is significant!) that we believe deserve your full attention.

If you are no longer interested in BASF, 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.