Should You Think About Buying Vivendi SE (EPA:VIV) Now?

Today we're going to take a look at the well-established Vivendi SE (EPA:VIV). The company's stock saw a decent share price growth in the teens level on the ENXTPA over the last few months. 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, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Vivendi’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Vivendi

What's The Opportunity In Vivendi?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.37% above my intrinsic value, which means if you buy Vivendi today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €9.05, there’s only an insignificant downside when the price falls to its real value. Furthermore, Vivendi’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Vivendi?

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. Though in the case of Vivendi, it is expected to deliver a relatively unexciting top-line growth of 5.2% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in VIV’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 VIV, now may not be the most optimal 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for Vivendi and we think they deserve your attention.

If you are no longer interested in Vivendi, 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.