At €10.38, Is It Time To Put Wärtsilä Oyj Abp (HEL:WRT1V) On Your Watch List?

While Wärtsilä Oyj Abp (HEL:WRT1V) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the HLSE, rising to highs of €12.03 and falling to the lows of €9.97. 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 Wärtsilä Oyj Abp's current trading price of €10.38 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Wärtsilä Oyj Abp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Wärtsilä Oyj Abp

What's The Opportunity In Wärtsilä Oyj Abp?

Great news for investors – Wärtsilä Oyj Abp is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €15.51, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Wärtsilä Oyj Abp’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 kind of growth will Wärtsilä Oyj Abp 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. Wärtsilä Oyj Abp's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since WRT1V is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 WRT1V for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WRT1V. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Wärtsilä Oyj Abp, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Wärtsilä Oyj Abp.

If you are no longer interested in Wärtsilä Oyj Abp, 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.