Yahoo Finance At €15.65, Is It Time To Put Carrefour SA (EPA:CA) On Your Watch List?
Let's talk about the popular Carrefour SA (EPA:CA). The company's shares saw significant share price movement during recent months on the ENXTPA, rising to highs of €16.32 and falling to the lows of €14.46. 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 Carrefour's current trading price of €15.65 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Carrefour’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 Carrefour
What is Carrefour worth?
Good news, investors! Carrefour is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €22.02, but it is currently trading at €15.65 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Carrefour’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Carrefour generate?
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. Carrefour’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since CA 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CA for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CA. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Carrefour. You can find everything you need to know about Carrefour in the latest infographic research report. If you are no longer interested in Carrefour, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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