Is Spartoo SAS (EPA:ALSPT) Potentially Undervalued?

While Spartoo SAS (EPA:ALSPT) might not have the largest market cap around , it saw a significant share price rise of 42% in the past couple of months on the ENXTPA. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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 examine Spartoo SAS’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Spartoo SAS

What Is Spartoo SAS Worth?

According to our valuation model, Spartoo SAS seems to be fairly priced at around 15.70% above our intrinsic value, which means if you buy Spartoo SAS today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth €0.47, there’s only an insignificant downside when the price falls to its real value. Furthermore, Spartoo SAS’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Spartoo SAS?

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. With profit expected to grow by 22% over the next couple of years, the future seems bright for Spartoo SAS. 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? ALSPT’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 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 ALSPT, now may not be the most advantageous 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 4 warning signs for Spartoo SAS you should be mindful of and 1 of them is a bit concerning.

If you are no longer interested in Spartoo SAS, 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.