When Should You Buy AVTECH Sweden AB (publ) (STO:AVT B)?

While AVTECH Sweden AB (publ) (STO:AVT B) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the OM, rising to highs of kr4.20 and falling to the lows of kr2.79. 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 AVTECH Sweden's current trading price of kr3.02 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 AVTECH Sweden’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 AVTECH Sweden

Is AVTECH Sweden Still Cheap?

Great news for investors – AVTECH Sweden is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I’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 27.96x is currently well-below the industry average of 54.13x, meaning that it is trading at a cheaper price relative to its peers. However, given that AVTECH Sweden’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 AVTECH Sweden?

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. AVTECH Sweden's earnings over the next few years are expected to increase by 79%, 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? Since AVT B is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on AVT B for a while, now might be the time to make a leap. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AVT B. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into AVTECH Sweden, you'd also look into what risks it is currently facing. At Simply Wall St, we found 3 warning signs for AVTECH Sweden and we think they deserve your attention.

If you are no longer interested in AVTECH Sweden, 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.