When Should You Buy Aena S.M.E., S.A. (BME:AENA)?

Aena S.M.E., S.A. (BME:AENA) maintained its current share price over the past couple of month on the BME, with a relatively tight range of €141 to €155. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Aena S.M.E’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 Aena S.M.E

What's The Opportunity In Aena S.M.E?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 18.59% above my intrinsic value, which means if you buy Aena S.M.E today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €120.58, 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 Aena S.M.E’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 kind of growth will Aena S.M.E 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. 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. Aena S.M.E's earnings over the next few years are expected to increase by 52%, 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 AENA’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on AENA, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Aena S.M.E as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Aena S.M.E has 2 warning signs and it would be unwise to ignore them.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.