Is There Now An Opportunity In Prysmian S.p.A. (BIT:PRY)?

Prysmian S.p.A. (BIT:PRY) saw a significant share price rise of 38% in the past couple of months on the BIT. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Prysmian’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is Prysmian Worth?

According to our valuation model, Prysmian seems to be fairly priced at around 9.85% above our intrinsic value, which means if you buy Prysmian today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €51.24, there’s only an insignificant downside when the price falls to its real value. In addition to this, Prysmian has a low beta, which suggests its share price is less volatile than the wider market.

See our latest analysis for Prysmian

What kind of growth will Prysmian generate?

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. With profit expected to grow by 92% over the next couple of years, the future seems bright for Prysmian. 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? PRY’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on PRY, 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 while earnings quality is important, it's equally important to consider the risks facing Prysmian at this point in time. While conducting our analysis, we found that Prysmian has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in Prysmian, 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.