When Should You Buy Vivendi SE (EPA:VIV)?

While Vivendi SE (EPA:VIV) might not be the most widely known stock at the moment, it had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of €8.03 to €8.79. However, is this the true valuation level of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Vivendi’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Vivendi

What's The Opportunity In Vivendi?

Good news, investors! Vivendi is still a bargain right now. According to my valuation, the intrinsic value for the stock is €13.24, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Vivendi’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Vivendi look like?

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. However, with a relatively muted revenue growth of 4.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Vivendi, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since VIV is currently undervalued, it may be a great time to increase your holdings in the stock. 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 VIV for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VIV. 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 buy.

So while earnings quality is important, it's equally important to consider the risks facing Vivendi at this point in time. Case in point: We've spotted 1 warning sign for Vivendi you should be aware of.

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.