Yahoo Finance Is It Time To Consider Buying VIB Vermögen AG (ETR:VIH1)?
While VIB Vermögen AG (ETR:VIH1) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the XTRA, rising to highs of €15.86 and falling to the lows of €11.92. 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 VIB Vermögen's current trading price of €11.92 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 VIB Vermögen’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for VIB Vermögen
What Is VIB Vermögen Worth?
Great news for investors – VIB Vermögen is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that VIB Vermögen’s ratio of 2.34x is below its peer average of 10.19x, which indicates the stock is trading at a lower price compared to the Real Estate industry. Another thing to keep in mind is that VIB Vermögen’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its industry peers, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Can we expect growth from VIB Vermögen?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 VIB Vermögen, at least in the near future.
What This Means For You
Are you a shareholder? Although VIH1 is currently trading below the industry PE ratio, the negative profit outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to VIH1, 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 VIH1 for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 4 warning signs for VIB Vermögen you should be mindful of and 2 of these are a bit unpleasant.
If you are no longer interested in VIB Vermögen, 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.
