At €221, Is It Time To Put Schneider Electric S.E. (EPA:SU) On Your Watch List?

Today we're going to take a look at the well-established Schneider Electric S.E. (EPA:SU). The company's stock saw significant share price movement during recent months on the ENXTPA, rising to highs of €238 and falling to the lows of €204. 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 Schneider Electric's current trading price of €221 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 Schneider Electric’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 Schneider Electric

What Is Schneider Electric Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 16.33% above our intrinsic value, which means if you buy Schneider Electric today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €190.15, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Schneider Electric’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Schneider Electric look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 44% over the next couple of years, the future seems bright for Schneider Electric. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in SU’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 an eye on SU, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect 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.

It can be quite valuable to consider what analysts expect for Schneider Electric from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Schneider Electric, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com