Yahoo Finance At €66.10, Is It Time To Put HORNBACH Holding AG & Co. KGaA (ETR:HBH) On Your Watch List?
While HORNBACH Holding AG & Co. KGaA (ETR:HBH) might not have the largest market cap around , it saw a decent share price growth of 14% on the XTRA over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on HORNBACH Holding KGaA’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for HORNBACH Holding KGaA
What Is HORNBACH Holding KGaA Worth?
Great news for investors – HORNBACH Holding KGaA is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is €98.68, but it is currently trading at €66.10 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, HORNBACH Holding KGaA’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 HORNBACH Holding KGaA 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. With profit expected to grow by 94% over the next couple of years, the future seems bright for HORNBACH Holding KGaA. 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? Since HBH 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on HBH 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 HBH. 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'd like to know more about HORNBACH Holding KGaA as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for HORNBACH Holding KGaA you should know about.
If you are no longer interested in HORNBACH Holding KGaA, 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.
