Yahoo Finance What Is UNIQA Insurance Group AG's (VIE:UQA) Share Price Doing?
UNIQA Insurance Group AG (VIE:UQA), which is in the insurance business, and is based in Austria, saw a double-digit share price rise of over 10% in the past couple of months on the WBAG. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at UNIQA Insurance Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for UNIQA Insurance Group
Is UNIQA Insurance Group still cheap?
Good news, investors! UNIQA Insurance Group is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €12.03, but it is currently trading at €9.06 on the share market, meaning that there is still an opportunity to buy now. However, given that UNIQA Insurance 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.
Can we expect growth from UNIQA Insurance Group?
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. Though in the case of UNIQA Insurance Group, it is expected to deliver a negative earnings growth of -2.8%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? Although UQA is currently undervalued, the negative 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 UQA, 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 UQA 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 UNIQA Insurance Group. You can find everything you need to know about UNIQA Insurance Group in the latest infographic research report. If you are no longer interested in UNIQA Insurance Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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.
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. Thank you for reading.
