Should You Investigate InPost S.A. (AMS:INPST) At €15.30?

InPost S.A. (AMS:INPST), is not the largest company out there, but it received a lot of attention from a substantial price movement on the ENXTAM over the last few months, increasing to €17.32 at one point, and dropping to the lows of €14.63. 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 InPost's current trading price of €15.30 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at InPost’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for InPost

What Is InPost Worth?

InPost is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that InPost’s ratio of 41.63x is above its peer average of 17.16x, which suggests the stock is trading at a higher price compared to the Logistics industry. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that InPost’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from InPost?

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 more than double over the next couple of years, the future seems bright for InPost. 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? It seems like the market has well and truly priced in INPST’s positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe INPST should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. 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 INPST for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for INPST, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into InPost, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 1 warning sign for InPost and you'll want to know about it.

If you are no longer interested in InPost, 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.