When Should You Buy Bolloré SE (EPA:BOL)?

Today we're going to take a look at the well-established Bolloré SE (EPA:BOL). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the ENXTPA. As a large-cap stock, it seems odd Bolloré is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s examine Bolloré’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Bolloré

Is Bolloré Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13% below my intrinsic value, which means if you buy Bolloré today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €5.80, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Bolloré has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Bolloré?

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. However, with a relatively muted revenue growth of 5.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Bolloré, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in BOL’s future outlook, 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 an eye on BOL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

It can be quite valuable to consider what analysts expect for Bolloré from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Bolloré, 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.