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Is Now The Time To Look At Buying TKH Group N.V. (AMS:TWEKA)?

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TKH Group N.V. (AMS:TWEKA), which is in the electrical business, and is based in Netherlands, saw a significant share price rise of over 20% in the past couple of months on the ENXTAM. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine TKH Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for TKH Group

What is TKH Group worth?

Good news, investors! TKH Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is €68.84, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that TKH Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will TKH Group generate?

ENXTAM:TWEKA Past and Future Earnings, June 28th 2019
ENXTAM:TWEKA Past and Future Earnings, June 28th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 47% over the next couple of years, the future seems bright for TKH Group. 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? Since TWEKA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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.

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Are you a potential investor? If you’ve been keeping an eye on TWEKA for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TWEKA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 TKH Group. You can find everything you need to know about TKH Group in the latest infographic research report. If you are no longer interested in TKH Group, 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.