Is Now An Opportune Moment To Examine CTS Eventim AG & Co. KGaA (ETR:EVD)?

CTS Eventim AG & Co. KGaA (ETR:EVD), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the XTRA. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine CTS Eventim KGaA’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for CTS Eventim KGaA

What Is CTS Eventim KGaA Worth?

According to my valuation model, the stock is currently overvalued by about 23%, trading at €61.50 compared to my intrinsic value of €49.92. This means that the opportunity to buy CTS Eventim KGaA at a good price has disappeared! But, is there another opportunity to buy low in the future? Since CTS Eventim KGaA’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from CTS Eventim KGaA?

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. Though in the case of CTS Eventim KGaA, it is expected to deliver a relatively unexciting earnings growth of 3.4%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in EVD’s future outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe EVD 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 tabs on EVD for some time, 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 positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about CTS Eventim KGaA as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for CTS Eventim KGaA and we think they deserve your attention.

If you are no longer interested in CTS Eventim KGaA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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