Juventus Football Club Sp.A. (BIT:JUVE), a media company based in Italy, saw significant share price volatility over the past couple of months on the BIT, rising to the highs of €0.88 and falling to the lows of €0.64. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Juventus Football Club’s current trading price of €0.69 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Juventus Football Club’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Juventus Football Club
What is Juventus Football Club worth?According to my relative valuation model, the stock is currently overvalued. In this instance, I’ve used the price-to-equity (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Juventus Football Club’s ratio of 50.29x is above its peer average of 22.02x, which suggests the stock is overvalued compared to the Media industry. But, is there another opportunity to buy low in the future? Since Juventus Football Club’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.
Can we expect growth from Juventus Football Club?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. Though in the case of Juventus Football Club, it is expected to deliver a highly negative earnings growth in the upcoming, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? If you believe JUVE is currently trading above its peers, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to de-risk your portfolio. 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 JUVE for a while, now may not be the best time to enter into the stock. Price climbed passed its industry peers, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Juventus Football Club. You can find everything you need to know about Juventus Football Club in the latest infographic research report. If you are no longer interested in Juventus Football Club, you can use our free platform to see my list of over 50 other stocks with a high growth potential.