At kr79.50, 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 significant share price movement during recent months on the OM, rising to highs of kr86.55 and falling to the lows of kr74.95. 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 Wihlborgs Fastigheter's current trading price of kr79.50 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 Wihlborgs Fastigheter’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 Wihlborgs Fastigheter

What Is Wihlborgs Fastigheter Worth?

The share price seems sensible at the moment 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 17.92x is currently trading slightly below its industry peers’ ratio of 20.28x, which means if you buy Wihlborgs Fastigheter today, you’d be paying a decent price for it. And if you believe Wihlborgs Fastigheter should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Furthermore, Wihlborgs Fastigheter’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What does the future of Wihlborgs Fastigheter 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. Though in the case of Wihlborgs Fastigheter, it is expected to deliver a relatively unexciting earnings growth of 5.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? WIHL’s future growth appears to have been factored into the current share price, with shares trading around industry price multiples. 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 WIHL? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you’ve been keeping an eye on WIHL, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Wihlborgs Fastigheter, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with Wihlborgs Fastigheter (including 1 which is a bit unpleasant).

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.