Adval Tech Holding AG (VTX:ADVN), a machinery company based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF250 at one point, and dropping to the lows of CHF227. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Adval Tech Holding’s current trading price of CHF227 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Adval Tech Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Adval Tech Holding
Is Adval Tech Holding still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 4.94% above my intrinsic value, which means if you buy Adval Tech Holding today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is CHF216.31, there’s only an insignificant downside when the price falls to its real value. Furthermore, it seems like Adval Tech Holding’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Adval Tech Holding?
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 grow by 25.76% over the next couple of years, the future seems bright for Adval Tech Holding. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? ADVN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. 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 the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on ADVN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Adval Tech Holding. You can find everything you need to know about Adval Tech Holding in the latest infographic research report. If you are no longer interested in Adval Tech Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.