UK Markets closed

Is Bet-At-Home.com AG (ETR:ACX) Potentially Undervalued?

Simply Wall St

Bet-At-Home.com AG (ETR:ACX), which is in the hospitality business, and is based in Germany, received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €57.00 at one point, and dropping to the lows of €45.02. 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 Bet-At-Home.com's current trading price of €46.20 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 Bet-At-Home.com’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 Bet-At-Home.com

What is Bet-At-Home.com worth?

Great news for investors – Bet-At-Home.com is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €76.84, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Bet-At-Home.com’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.

Can we expect growth from Bet-At-Home.com?

XTRA:ACX Past and Future Earnings, September 29th 2019

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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Bet-At-Home.com, at least in the near future.

What this means for you:

Are you a shareholder? Although ACX is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to ACX, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on ACX for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bet-At-Home.com. You can find everything you need to know about Bet-At-Home.com in the latest infographic research report. If you are no longer interested in Bet-At-Home.com, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.