What Is Sixt SE's (ETR:SIX2) Share Price Doing?

While Sixt SE (ETR:SIX2) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the XTRA. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Sixt’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Sixt

What Is Sixt Worth?

According to our valuation model, the stock is currently overvalued by about 24%, trading at €94.75 compared to our intrinsic value of €76.24. This means that the opportunity to buy Sixt at a good price has disappeared! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Sixt’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 Sixt 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. 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. With profit expected to grow by a double-digit 12% over the next couple of years, the outlook is positive for Sixt. 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? It seems like the market has well and truly priced in SIX2’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 SIX2 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 tabs on SIX2 for some time, 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 SIX2, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Sixt as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 3 warning signs we've spotted with Sixt (including 1 which can't be ignored).

If you are no longer interested in Sixt, 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.