At €15.92, Is PORR AG (VIE:POS) Worth Looking At Closely? - Yahoo Finance

PORR AG (VIE:POS), which is in the construction business, and is based in Austria, saw significant share price movement during recent months on the WBAG, rising to highs of €22.00 and falling to the lows of €15.24. 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 PORR's current trading price of €15.92 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 PORR’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 PORR

Is PORR still cheap?

According to my valuation model, PORR seems to be fairly priced at around 9.9% below my intrinsic value, which means if you buy PORR today, you’d be paying a fair price for it. And if you believe that the stock is really worth €17.66, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, PORR’s low beta implies that the stock is less volatile than the wider market.

What does the future of PORR look like?

WBAG:POS Past and Future Earnings, February 7th 2020

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. With profit expected to grow by 63% over the next couple of years, the future seems bright for PORR. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? POS’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on POS, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on PORR. You can find everything you need to know about PORR in the latest infographic research report. If you are no longer interested in PORR, 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.

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At €15.92, Is PORR AG (VIE:POS) Worth Looking At Closely? - Yahoo Finance
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