Is Now An Opportune Moment To Examine Wilh. Wilhelmsen Holding ASA (OB:WWI)?

Wilh. Wilhelmsen Holding ASA (OB:WWI), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the OB. The recent jump in the share price has meant that the company is trading around its 52-week high. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Wilh. Wilhelmsen Holding’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Wilh. Wilhelmsen Holding

What's The Opportunity In Wilh. Wilhelmsen Holding?

Good news, investors! Wilh. Wilhelmsen Holding is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 3.36x is currently well-below the industry average of 6.06x, meaning that it is trading at a cheaper price relative to its peers. Wilh. Wilhelmsen Holding’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from Wilh. Wilhelmsen Holding?

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. However, with a negative profit growth of -15% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Wilh. Wilhelmsen Holding. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although WWI is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to WWI, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on WWI for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Wilh. Wilhelmsen Holding as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Wilh. Wilhelmsen Holding.

If you are no longer interested in Wilh. Wilhelmsen Holding, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com