Why Amplifon S.p.A. (BIT:AMP) Could Be Worth Watching

Amplifon S.p.A. (BIT:AMP), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the BIT. 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? Today I will analyse the most recent data on Amplifon’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Amplifon

What's The Opportunity In Amplifon?

According to my valuation model, Amplifon seems to be fairly priced at around 8.35% above my intrinsic value, which means if you buy Amplifon today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €32.39, there’s only an insignificant downside when the price falls to its real value. Furthermore, Amplifon’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Amplifon?

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. Amplifon's earnings over the next few years are expected to increase by 63%, 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? AMP’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on AMP, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Amplifon as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Amplifon and we think they deserve your attention.

If you are no longer interested in Amplifon, 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.