Should You Investigate Hellenic Telecommunications Organization S.A. (ATH:HTO) At €12.40?

Hellenic Telecommunications Organization S.A. (ATH:HTO), might not be a large cap stock, but it saw a decent share price growth in the teens level on the ATSE over the last few months. 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 Hellenic Telecommunications Organization’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Hellenic Telecommunications Organization

What is Hellenic Telecommunications Organization worth?

Hellenic Telecommunications Organization appears to be overvalued by 38% at the moment, based on my discounted cash flow valuation. The stock is currently priced at €12.40 on the market compared to my intrinsic value of €9.01. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that Hellenic Telecommunications Organization’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Hellenic Telecommunications Organization?

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. 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. Hellenic Telecommunications Organization's earnings over the next few years are expected to increase by 88%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in HTO’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe HTO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on HTO for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for HTO, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Hellenic Telecommunications Organization, you'd also look into what risks it is currently facing. At Simply Wall St, we found 3 warning signs for Hellenic Telecommunications Organization and we think they deserve your attention.

If you are no longer interested in Hellenic Telecommunications Organization, 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. 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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