Is It Too Late To Consider Buying Valmet Oyj (HEL:VALMT)?

Valmet Oyj (HEL:VALMT), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the HLSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Valmet Oyj’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Valmet Oyj

Is Valmet Oyj Still Cheap?

Great news for investors – Valmet Oyj is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €42.05, but it is currently trading at €26.26 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Valmet Oyj’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Valmet Oyj?

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. However, with a relatively muted profit growth of 1.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Valmet Oyj, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since VALMT is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on VALMT for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VALMT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 1 warning sign for Valmet Oyj and we think they deserve your attention.

If you are no longer interested in Valmet Oyj, 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.