When Should You Buy Hellenic Telecommunications Organization S.A. (ATH:HTO)?

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 €16.75 at one point, and dropping to the lows of €14.92. 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 €15.39 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.

Check out 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 €21.00, but it is currently trading at €15.39 on the share market, meaning that there is still an opportunity to buy now. However, 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.

What kind of growth will Hellenic Telecommunications Organization generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 50% over the next couple of years, the future seems bright for Hellenic Telecommunications Organization. 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? Since HTO is currently undervalued, it may be a great time to accumulate more of 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 capital structure 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 make a leap. Its buoyant 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for Hellenic Telecommunications Organization you should be aware of.

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.