Is there now an opportunity in Interpump Group SpA (BIT: IP)?
While Interpump Group SpA (BIT: IP) may not be the most well-known stock right now, it has seen a double-digit rise in its share price of more than 10% over the past few years. last two months on the ILO. As a mid-cap stock with high analyst coverage, you can assume that any recent changes in the outlook for the company are already built into the stock price. However, what if the stock is still a good deal? Let’s take a look at the outlook and value of Interpump Group based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Interpump Group
What is Interpump Group worth?
Based on my multiple pricing model, which compares the company’s price-to-earnings ratio to the industry average, the stock price seems justified. In this case, I used the price-to-earnings (PE) ratio since there isn’t enough information to reliably forecast the stock’s cash flow. I find that Interpump Group’s ratio of 25.16x is trading slightly above its industry peers ratio of 24.93x, which means if you buy Interpump Group today, you would pay a price. relatively reasonable for that. And if you think Interpump Group should be trading within that range, then there really isn’t room for the share price to rise beyond the levels of other industry peers along the way. term. Is there another opportunity to buy low in the future? Since the Interpump Group share price is quite volatile, we could potentially see it go down (or up) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator of how the stock is moving relative to the rest of the market.
What growth will Interpump Group generate?
Investors looking to grow their portfolio may want to consider the prospects of a company before buying its shares. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s take a look at the future expectations of the business as well. With earnings expected to grow in double digits by 11% over the next two years, the outlook is positive for Interpump Group. It looks like 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? It appears the market has already taken in the positive outlook for IP, with stocks trading around industry price multiples. However, there are also other important factors that we did not consider today, such as the financial strength of the company. Have these factors changed since the last time you looked at intellectual property? Will you be confident enough to invest in the business if the price drops below the industry PE ratio?
Are you a potential investor? If you’ve been keeping an eye out for IP, this might not be the best time to buy, given that it trades around industry price multiples. However, the positive outlook is encouraging for IP, which means that it is worth taking a closer look at 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. For example – Interpump Group has 1 warning sign we think you should be aware.
If you are no longer interested in Interpump Group, you can use our free platform to view our list of over 50 other high growth potential stocks.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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