Should You Think About Buying Schneider Electric S.E. (EPA:SU) Now?

Let's talk about the popular Schneider Electric S.E. (EPA:SU). The company's shares maintained its current share price over the past couple of month on the ENXTPA, with a relatively tight range of €233 to €252. However, does this price actually reflect the true 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.

See our latest analysis for Schneider Electric

Is Schneider Electric Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.65% 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 that the stock is really worth €221.86, there’s only an insignificant downside when the price falls to its real value. In addition to this, Schneider Electric has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Schneider Electric?

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 60% 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? SU’s optimistic 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on SU, 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.

Diving deeper into the forecasts for Schneider Electric mentioned earlier will help you understand how analysts view the stock going forward. 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.