While Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €4.19 at one point, and dropping to the lows of €3.45. 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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien's current trading price of €3.75 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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien’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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien

What Is Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien Worth?

The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.74x is currently trading slightly below its industry peers’ ratio of 15.14x, which means if you buy Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien today, you’d be paying a reasonable price for it. And if you believe Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Although, there may be an opportunity to buy in the future. This is because Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien’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.

What does the future of Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien look like?

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 Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.