At €21.70, Is It Time To Put Compagnie des Alpes SA (EPA:CDA) On Your Watch List?

Compagnie des Alpes SA (EPA:CDA), is not the largest company out there, but it saw a decent share price growth of 11% on the ENXTPA over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Compagnie des Alpes’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is Compagnie des Alpes Worth?

Great news for investors – Compagnie des Alpes is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €28.86, but it is currently trading at €21.70 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Compagnie des Alpes’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Check out our latest analysis for Compagnie des Alpes

What does the future of Compagnie des Alpes look like?

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. With profit expected to grow by a double-digit 19% over the next couple of years, the outlook is positive for Compagnie des Alpes. 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? Since CDA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CDA for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CDA. 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 investment decision.

If you want to dive deeper into Compagnie des Alpes, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Compagnie des Alpes and you'll want to know about these.

If you are no longer interested in Compagnie des Alpes, 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.