What Is AB Electrolux (publ)'s (STO:ELUX B) Share Price Doing?

AB Electrolux (publ) (STO:ELUX B), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the OM. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at AB Electrolux’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for AB Electrolux

Is AB Electrolux Still Cheap?

Good news, investors! AB Electrolux is still a bargain right now. According to my valuation, the intrinsic value for the stock is SEK192.42, but it is currently trading at kr140 on the share market, meaning that there is still an opportunity to buy now. However, given that AB Electrolux’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.

What does the future of AB Electrolux look like?

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. AB Electrolux's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since ELUX B is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 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 make a leap. Its prosperous 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 while earnings quality is important, it's equally important to consider the risks facing AB Electrolux at this point in time. For example, we've found that AB Electrolux has 5 warning signs (3 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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.

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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.