What Does Harvia Oyj's (HEL:HARVIA) Share Price Indicate?

Harvia Oyj (HEL:HARVIA), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the HLSE. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Harvia Oyj’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Harvia Oyj

What Is Harvia Oyj Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.62% above my intrinsic value, which means if you buy Harvia Oyj today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €21.87, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Harvia Oyj’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Harvia 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. 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. Though in the case of Harvia Oyj, it is expected to deliver a relatively unexciting earnings growth of 9.5%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? HARVIA’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on HARVIA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - Harvia Oyj has 4 warning signs we think you should be aware of.

If you are no longer interested in Harvia 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.