Yahoo Finance At €41.20, Is It Time To Put Knaus Tabbert AG (ETR:KTA) On Your Watch List?
Knaus Tabbert AG (ETR:KTA), might not be a large cap stock, but it saw significant share price movement during recent months on the XTRA, rising to highs of €47.00 and falling to the lows of €38.95. 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 Knaus Tabbert's current trading price of €41.20 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 Knaus Tabbert’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 Knaus Tabbert
Is Knaus Tabbert Still Cheap?
According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Knaus Tabbert’s ratio of 6.34x is trading slightly above its industry peers’ ratio of 5.59x, which means if you buy Knaus Tabbert today, you’d be paying a relatively reasonable price for it. And if you believe Knaus Tabbert should be trading in this range, then there isn’t really any room for the share price grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Knaus Tabbert’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 kind of growth will Knaus Tabbert 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. With profit expected to grow by 81% over the next couple of years, the future seems bright for Knaus Tabbert. 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? It seems like the market has already priced in KTA’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at KTA? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?
Are you a potential investor? If you’ve been keeping an eye on KTA, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for KTA, 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.
If you want to dive deeper into Knaus Tabbert, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 3 warning signs for Knaus Tabbert (of which 1 makes us a bit uncomfortable!) you should know about.
If you are no longer interested in Knaus Tabbert, 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.
