Nordex SE (ETR:NDX1), is not the largest company out there, but it saw a significant share price rise of 23% in the past couple of months on the XTRA. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Nordex’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Nordex

What's The Opportunity In Nordex?

The stock is currently trading at €14.06 on the share market, which means it is overvalued by 33% compared to our intrinsic value of €10.60. This means that the opportunity to buy Nordex at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that Nordex’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 does the future of Nordex 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. 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. Nordex's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in NDX1’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe NDX1 should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on NDX1 for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for NDX1, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.