Is There Now An Opportunity In EssilorLuxottica Société anonyme (EPA:EL)?

Today we're going to take a look at the well-established EssilorLuxottica Société anonyme (EPA:EL). The company's stock saw a decent share price growth of 14% on the ENXTPA over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at EssilorLuxottica Société anonyme’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for EssilorLuxottica Société anonyme

What Is EssilorLuxottica Société anonyme Worth?

According to our valuation model, EssilorLuxottica Société anonyme seems to be fairly priced at around 11% below our intrinsic value, which means if you buy EssilorLuxottica Société anonyme today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €260.26, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, EssilorLuxottica Société anonyme’s low beta implies that the stock is less volatile than the wider market.

What does the future of EssilorLuxottica Société anonyme look like?

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. With profit expected to grow by 68% over the next couple of years, the future seems bright for EssilorLuxottica Société anonyme. 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? EL’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 track record of its management team. 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 EL, now may not be the most optimal 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 diving deeper into 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 EssilorLuxottica Société anonyme mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in EssilorLuxottica 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.