Vaudoise Assurances Holding SA (VTX:VAHN), a insurance company based in Switzerland, saw its share price hover around a small range of CHF508 to CHF542 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Vaudoise Assurances Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Vaudoise Assurances Holding
What is Vaudoise Assurances Holding worth?
Vaudoise Assurances Holding appears to be overvalued by 29.79% at the moment, based on my discounted cash flow valuation. The stock is currently priced at CHF522 on the market compared to my intrinsic value of CHF402.19. This means that the buying opportunity has probably disappeared for now. Another thing to keep in mind is that Vaudoise Assurances Holding’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Vaudoise Assurances Holding 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. 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 a double-digit 11.89% over the next couple of years, the outlook is positive for Vaudoise Assurances 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? VAHN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe VAHN 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 an eye on VAHN for a while, 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 VAHN, which means it’s worth diving deeper into other factors 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 Vaudoise Assurances Holding. You can find everything you need to know about Vaudoise Assurances Holding in the latest infographic research report. If you are no longer interested in Vaudoise Assurances 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.