At kr108, Is It Time To Put Wihlborgs Fastigheter AB (publ) (STO:WIHL) On Your Watch List?

Wihlborgs Fastigheter AB (publ) (STO:WIHL), 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 OM. The company is inching closer to its yearly highs following the recent share price climb. 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. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Wihlborgs Fastigheter’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Wihlborgs Fastigheter

What Is Wihlborgs Fastigheter Worth?

Wihlborgs Fastigheter appears to be overvalued by 36% at the moment, based on our discounted cash flow valuation. The stock is currently priced at kr108 on the market compared to our intrinsic value of SEK79.10. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Wihlborgs Fastigheter’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 Wihlborgs Fastigheter?

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Wihlborgs Fastigheter. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in WIHL’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe WIHL should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on WIHL for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for WIHL, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Be aware that Wihlborgs Fastigheter is showing 4 warning signs in our investment analysis and 1 of those shouldn't be ignored...

If you are no longer interested in Wihlborgs Fastigheter, 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.