What Does AB Electrolux (publ)'s (STO:ELUX B) Share Price Indicate?

AB Electrolux (publ) (STO:ELUX B), might not be a large cap stock, but it saw significant share price movement during recent months on the OM, rising to highs of kr154 and falling to the lows of kr110. 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 AB Electrolux's current trading price of kr111 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 AB Electrolux’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 AB Electrolux

What's The Opportunity In AB Electrolux?

Great news for investors – AB Electrolux is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is SEK162.72, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, AB Electrolux’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of AB Electrolux look like?

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. However, with a relatively muted revenue growth of 6.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for AB Electrolux, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ELUX B is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ELUX B for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ELUX 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.

So if you'd like to dive deeper into this stock, it's crucial to consider 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 AB Electrolux.

If you are no longer interested in AB Electrolux, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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

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.