Yahoo Finance Should You Investigate BASF SE (ETR:BAS) At €50.06?
Let's talk about the popular BASF SE (ETR:BAS). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the XTRA. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at BASF’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for BASF
What's The Opportunity In BASF?
Good news, investors! BASF is still a bargain right now. According to my valuation, the intrinsic value for the stock is €81.51, but it is currently trading at €50.06 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, BASF’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 BASF 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. However, with a relatively muted revenue growth of 1.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for BASF, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since BAS is currently undervalued, it may be a great time to accumulate more of 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 BAS 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 BAS. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. You'd be interested to know, that we found 1 warning sign for BASF and you'll want to know about this.
If you are no longer interested in BASF, 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.
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