Should You Think About Buying Hellenic Telecommunications Organization S.A. (ATH:HTO) Now?

Hellenic Telecommunications Organization S.A. (ATH:HTO), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the ATSE over the last few months, increasing to €18.40 at one point, and dropping to the lows of €15.66. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hellenic Telecommunications Organization's current trading price of €16.91 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the 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 there are any catalysts for a price change.

See our latest analysis for Hellenic Telecommunications Organization

What's the opportunity in Hellenic Telecommunications Organization?

Great news for investors – Hellenic Telecommunications Organization is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €24.64, but it is currently trading at €16.91 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Hellenic Telecommunications Organization’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Hellenic Telecommunications Organization look like?

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. Hellenic Telecommunications Organization's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since HTO is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on HTO for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HTO. 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Hellenic Telecommunications Organization.

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. 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.