Is It Too Late To Consider Buying ASSA ABLOY AB (publ) (STO:ASSA B)?

ASSA ABLOY AB (publ) (STO:ASSA B) saw a significant share price rise of over 20% in the past couple of months on the OM. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on ASSA ABLOY’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for ASSA ABLOY

What Is ASSA ABLOY Worth?

According to my valuation model, ASSA ABLOY seems to be fairly priced at around 13% below my intrinsic value, which means if you buy ASSA ABLOY today, you’d be paying a fair price for it. And if you believe that the stock is really worth SEK325.70, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, ASSA ABLOY has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will ASSA ABLOY generate?

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. ASSA ABLOY's earnings over the next few years are expected to increase by 37%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in ASSA B’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 ASSA B, now may not be the most optimal 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - ASSA ABLOY has 1 warning sign we think you should be aware of.

If you are no longer interested in ASSA ABLOY, 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.