When Should You Buy Landis+Gyr Group AG (VTX:LAND)?

Landis+Gyr Group AG (VTX:LAND), is not the largest company out there, but it saw significant share price movement during recent months on the SWX, rising to highs of CHF55.80 and falling to the lows of CHF48.85. 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 Landis+Gyr Group’s current trading price of CHF53.20 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 Landis+Gyr Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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According to our valuation model, Landis+Gyr Group seems to be fairly priced at around 18% below our intrinsic value, which means if you buy Landis+Gyr Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth CHF64.49, then there’s not much of an upside to gain from mispricing. What’s more, Landis+Gyr Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

View our latest analysis for Landis+Gyr Group

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. In the upcoming year, Landis+Gyr Group’s earnings are expected to increase by 81%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

Are you a shareholder? It seems like the market has already priced in LAND’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 an eye on LAND, 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.

If you’d like to know more about Landis+Gyr Group as a business, it’s important to be aware of any risks it’s facing. For example – Landis+Gyr Group has 1 warning sign we think you should be aware of.

If you are no longer interested in Landis+Gyr 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.