At €16.33, Is It Time To Put Organization of Football Prognostics S.A. (ATH:OPAP) On Your Watch List?

Organization of Football Prognostics S.A. (ATH:OPAP), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the ATSE. The company is now trading at yearly-high levels following the recent surge in its share price. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Organization of Football Prognostics’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Organization of Football Prognostics

Is Organization of Football Prognostics Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 10% below our intrinsic value, which means if you buy Organization of Football Prognostics today, you’d be paying a fair price for it. And if you believe that the stock is really worth €18.17, then there’s not much of an upside to gain from mispricing. In addition to this, Organization of Football Prognostics has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Organization of Football Prognostics?

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 Organization of Football Prognostics, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Currently, OPAP appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on OPAP for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on OPAP should the price fluctuate below its true value.

So while earnings quality is important, it's equally important to consider the risks facing Organization of Football Prognostics at this point in time. For instance, we've identified 3 warning signs for Organization of Football Prognostics (2 can't be ignored) you should be familiar with.

If you are no longer interested in Organization of Football Prognostics, 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.