Stevanato Group S.p.A. (NYSE:STVN), might not be a large cap stock, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$35.49 and falling to the lows of US$25.75. 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 Stevanato Group's current trading price of US$26.67 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Stevanato Group'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 Stevanato Group
Is Stevanato Group Still Cheap?
According to my valuation model, Stevanato Group seems to be fairly priced at around 16.09% above my intrinsic value, which means if you buy Stevanato Group today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $22.97, then there isn't really any room for the share price grow beyond what it's currently trading. Furthermore, Stevanato Group's low beta implies that the stock is less volatile than the wider market.
What kind of growth will Stevanato Group 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. 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. Stevanato Group'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? It seems like the market has already priced in STVN's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you've been keeping tabs on STVN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for Stevanato Group you should be aware of.
If you are no longer interested in Stevanato Group, 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.