At €61.20, Is BASSAC Société anonyme (EPA:BASS) Worth Looking At Closely?

BASSAC Société anonyme (EPA:BASS), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the ENXTPA over the last few months. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at BASSAC 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 BASSAC Société anonyme

What is BASSAC Société anonyme worth?

According to my valuation model, BASSAC Société anonyme seems to be fairly priced at around 13.03% above my intrinsic value, which means if you buy BASSAC Société anonyme today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €54.15, there’s only an insignificant downside when the price falls to its real value. Furthermore, BASSAC Société anonyme’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will BASSAC Société anonyme generate?

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 profit growth of 9.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for BASSAC Société anonyme, at least in the short term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in BASS’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on BASS, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about BASSAC Société anonyme as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for BASSAC Société anonyme and we think they deserve your attention.

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This article by Simply Wall St is general in nature. 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.
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