Is Now The Time To Look At Buying Dassault Aviation Société anonyme (EPA:AM)?

Today we're going to take a look at the well-established Dassault Aviation Société anonyme (EPA:AM). The company's stock saw significant share price movement during recent months on the ENXTPA, rising to highs of €187 and falling to the lows of €158. 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 Dassault Aviation Société anonyme's current trading price of €173 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Dassault Aviation Société anonyme’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Dassault Aviation Société anonyme

What's The Opportunity In Dassault Aviation Société anonyme?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 17.42% above my intrinsic value, which means if you buy Dassault Aviation Société anonyme today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €147.42, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Dassault Aviation Société anonyme’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Dassault Aviation Société anonyme generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Dassault Aviation Société anonyme's earnings over the next few years are expected to increase by 48%, 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 AM’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 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 tabs on AM, 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Dassault Aviation Société anonyme, 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.