Nabaltec AG (ETR:NTG), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €19.40 at one point, and dropping to the lows of €13.95. 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 Nabaltec's current trading price of €14.10 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 Nabaltec’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 Nabaltec

What's The Opportunity In Nabaltec?

Great news for investors – Nabaltec is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €22.05, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Nabaltec’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 Nabaltec generate?

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. Nabaltec's earnings over the next few years are expected to increase by 32%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since NTG is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NTG for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NTG. 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.