Is Now An Opportune Moment To Examine TAG Immobilien AG (ETR:TEG)?

While TAG Immobilien AG (ETR:TEG) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €11.57 at one point, and dropping to the lows of €9.21. 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 TAG Immobilien's current trading price of €9.54 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at TAG Immobilien’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 TAG Immobilien

What Is TAG Immobilien Worth?

According to my valuation model, TAG Immobilien seems to be fairly priced at around 9.13% above my intrinsic value, which means if you buy TAG Immobilien today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €8.74, there’s only an insignificant downside when the price falls to its real value. Furthermore, TAG Immobilien’s low beta implies that the stock is less volatile than the wider market.

What does the future of TAG Immobilien look like?

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. In the upcoming year, TAG Immobilien's earnings are expected to increase by 78%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TEG’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 tabs on TEG, 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 diving deeper into 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. In terms of investment risks, we've identified 1 warning sign with TAG Immobilien, and understanding this should be part of your investment process.

If you are no longer interested in TAG Immobilien, 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.