Giglio Group S.p.A. (BIT:GG), is not the largest company out there, but it saw significant share price movement during recent months on the BIT, rising to highs of €2.37 and falling to the lows of €2.04. 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 Giglio Group's current trading price of €2.15 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 Giglio Group’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 Giglio Group
What is Giglio Group worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.1% below my intrinsic value, which means if you buy Giglio Group today, you’d be paying a fair price for it. And if you believe the company’s true value is €2.15, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Giglio Group’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Giglio Group 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 revenues expected to grow by 70% over the next couple of years, the future seems bright for Giglio Group. If the level of expenses is able to be maintained, 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? GG’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 GG, now may not be the most optimal 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for Giglio Group you should be aware of.
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This article by Simply Wall St is general in nature. 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.
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About BIT:GG
Giglio Group
Designs, creates, and manages e-commerce platforms for fashion, design, lifestyle and food and healthcare sectors in Italy and internationally.
Low with imperfect balance sheet.
