Assystem S.A. (EPA:ASY), which is in the professional services business, and is based in France, saw significant share price movement during recent months on the ENXTPA, rising to highs of €39.50 and falling to the lows of €29.10. 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 Assystem's current trading price of €31.10 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 Assystem’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 Assystem

Is Assystem still cheap?

The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 17.57x is currently trading slightly above its industry peers’ ratio of 15.41x, which means if you buy Assystem today, you’d be paying a relatively fair price for it. And if you believe that Assystem should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. Furthermore, Assystem’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What kind of growth will Assystem generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Assystem’s earnings over the next few years are expected to increase by 45%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? ASY’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 track record of its management team. Have these factors changed since the last time you looked at ASY? Will you have enough conviction to buy should the price fluctuate below the true value?

Are you a potential investor? If you’ve been keeping tabs on ASY, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for ASY, 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 Assystem. You can find everything you need to know about Assystem in the latest infographic research report. If you are no longer interested in Assystem, 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.

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