What Does CTS Eventim AG & Co. KGaA's (ETR:EVD) Share Price Indicate?

While CTS Eventim AG & Co. KGaA (ETR:EVD) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the XTRA over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine CTS Eventim KGaA’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for CTS Eventim KGaA

Is CTS Eventim KGaA Still Cheap?

According to my valuation model, CTS Eventim KGaA seems to be fairly priced at around 17.24% above my intrinsic value, which means if you buy CTS Eventim KGaA today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €56.08, 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 CTS Eventim KGaA’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 CTS Eventim KGaA generate?

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. With profit expected to grow by a double-digit 17% over the next couple of years, the outlook is positive for CTS Eventim KGaA. 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? EVD’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on EVD, 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.

If you want to dive deeper into CTS Eventim KGaA, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with CTS Eventim KGaA, and understanding this should be part of your investment process.

If you are no longer interested in CTS Eventim KGaA, 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.