Hellenic Telecommunications Organization SA (ATH:HTO), is not the biggest company in the market, but it has seen significant price movements over the past few months on the ATSE, reaching highs of €17.15 and falling to lows of €15.18. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. A question that needs to be answered is whether Hellenic Telecommunications Organization’s current share price of €15.73 reflects the true value of the mid cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at Hellenic Telecommunications Organization’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 Hellenic Telecommunications Organization
What is the opportunity in the Hellenic Telecommunications Organization?
The stock currently seems quite valued according to my valuation model. It trades around 9.7% below my intrinsic value, which means that if you buy Hellenic Telecommunications Organization today, you will pay a reasonable price for it. And if you think the real value of the company is €17.42, then there’s not much room for the stock price to rise beyond what it’s currently trading. Although there may be an opportunity to buy in the future. This is because Hellenic Telecommunications Organization’s beta (a measure of share price volatility) is high, which means that its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s stock will likely fall more than the rest of the market, providing an excellent buying opportunity.
What does the future of the Hellenic Telecommunications Organization look like?
Investors looking for portfolio growth may want to consider a company’s prospects before buying its stock. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With double-digit earnings growth of 15% expected over the next two years, the outlook is positive for Hellenic Telecommunications Organization. It seems that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.
What this means for you
Are you a shareholder? HTO’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 that we have not 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 conviction to buy if the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on HTO, now might not be the most optimal time to buy, given that it’s trading around its fair value. However, the positive outlook is encouraging for the company, which means it is worth digging deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind that when it comes to analyzing a stock, it is worth noting the risks involved. Example: we have identified 1 warning sign for the Hellenic Telecommunications Organization you should be aware.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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