At €163, Is ATOSS Software AG (ETR:AOF) Worth Looking At Closely?

ATOSS Software AG (ETR:AOF), is not the largest company out there, but it saw significant share price movement during recent months on the XTRA, rising to highs of €192 and falling to the lows of €163. 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 ATOSS Software's current trading price of €163 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 ATOSS Software’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for ATOSS Software

What's the opportunity in ATOSS Software?

According to my valuation model, ATOSS Software seems to be fairly priced at around 8.65% above my intrinsic value, which means if you buy ATOSS Software today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth €150.39, 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 ATOSS Software’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 does the future of ATOSS Software look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 21% over the next couple of years, the future seems bright for ATOSS Software. 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? AOF’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 AOF, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

It can be quite valuable to consider what analysts expect for ATOSS Software from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in ATOSS Software, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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.

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