What Does Mobotix AG's (ETR:MBQ) Share Price Indicate?

Mobotix AG (ETR:MBQ), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €2.40 at one point, and dropping to the lows of €1.58. 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 Mobotix's current trading price of €1.58 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 Mobotix’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 Mobotix

What's The Opportunity In Mobotix?

Mobotix appears to be overvalued by 21% at the moment, based on our discounted cash flow valuation. The stock is currently priced at €1.58 on the market compared to our intrinsic value of €1.31. Not the best news for investors looking to buy! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Mobotix’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.

What does the future of Mobotix 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. Mobotix's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in MBQ’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe MBQ should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on MBQ for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for MBQ, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Mobotix, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 4 warning signs for Mobotix (of which 1 makes us a bit uncomfortable!) you should know about.

If you are no longer interested in Mobotix, 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.