Yahoo Finance Is It Time To Consider Buying Siemens Aktiengesellschaft (ETR:SIE)?
Let's talk about the popular Siemens Aktiengesellschaft (ETR:SIE). The company's shares saw significant share price movement during recent months on the XTRA, rising to highs of €185 and falling to the lows of €159. 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 Siemens' current trading price of €173 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 Siemens’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 Siemens
Is Siemens Still Cheap?
Good news, investors! Siemens is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €270.79, but it is currently trading at €173 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Siemens’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Siemens?
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. However, with a relatively muted profit growth of 10.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Siemens, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since SIE is currently undervalued, it may be a great time to increase your holdings in the stock. 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 SIE for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SIE. 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 investment decision.
If you'd like to know more about Siemens as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Siemens you should know about.
If you are no longer interested in Siemens, 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.
