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

CTS Eventim AG & Co. KGaA (ETR:EVD), is not the largest company out there, but it saw a decent share price growth in the teens level on the XTRA over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on CTS Eventim KGaA’s outlook and valuation to see if the opportunity still exists.

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 7.1% below my intrinsic value, which means if you buy CTS Eventim KGaA today, you’d be paying a fair price for it. And if you believe that the stock is really worth €67.90, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that CTS Eventim KGaA’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from CTS Eventim KGaA?

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 profit growth of 0.02% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for CTS Eventim KGaA, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in EVD’s future outlook, 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 positive outlook 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - CTS Eventim KGaA has 2 warning signs we think you should be aware of.

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.