Should You Think About Buying Corbion N.V. (AMS:CRBN) Now?

Corbion N.V. (AMS:CRBN), might not be a large cap stock, but it saw a decent share price growth in the teens level on the ENXTAM over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Corbion’s outlook and valuation to see if the opportunity still exists.

Our analysis indicates that CRBN is potentially undervalued!

What's The Opportunity In Corbion?

According to my valuation model, Corbion seems to be fairly priced at around 1.6% below my intrinsic value, which means if you buy Corbion today, you’d be paying a fair price for it. And if you believe the company’s true value is €28.55, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Corbion has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Corbion 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 65% over the next couple of years, the future seems bright for Corbion. 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? CRBN’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 tabs on CRBN, 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.

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. Every company has risks, and we've spotted 3 warning signs for Corbion (of which 2 don't sit too well with us!) you should know about.

If you are no longer interested in Corbion, 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.