Is It Too Late To Consider Buying Bouygues SA (EPA:EN)?

July 20, 2022
  •  Updated
September 29, 2022
ENXTPA:EN
Source: Shutterstock

Today we're going to take a look at the well-established Bouygues SA (EPA:EN). The company's stock received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €33.06 at one point, and dropping to the lows of €27.65. 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 Bouygues' current trading price of €28.83 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 Bouygues’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 Bouygues

What is Bouygues worth?

Good news, investors! Bouygues is still a bargain right now. According to my valuation, the intrinsic value for the stock is €37.30, but it is currently trading at €28.83 on the share market, meaning that there is still an opportunity to buy now. However, given that Bouygues’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 does the future of Bouygues look like?

earnings-and-revenue-growth
ENXTPA:EN Earnings and Revenue Growth July 20th 2022

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. Bouygues' earnings over the next few years are expected to increase by 38%, 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? Since EN is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 EN for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EN. 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 buy.

It can be quite valuable to consider what analysts expect for Bouygues from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

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

Valuation is complex, but we're helping make it simple.

Find out whether Bouygues is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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