Why Georg Fischer AG (VTX:FI-N) Could Be Worth Watching

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Georg Fischer AG (VTX:FI-N), which is in the machinery business, and is based in Switzerland, received a lot of attention from a substantial price movement on the SWX over the last few months, increasing to CHF1053 at one point, and dropping to the lows of CHF829. 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 Georg Fischer's current trading price of CHF829 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Georg Fischer’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 Georg Fischer

What is Georg Fischer worth?

Great news for investors – Georg Fischer is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CHF1077.93, but it is currently trading at CHF829 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Georg Fischer’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.

What does the future of Georg Fischer look like?

SWX:FI-N Past and Future Earnings, July 19th 2019
SWX:FI-N Past and Future Earnings, July 19th 2019

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. 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. However, with a relatively muted profit growth of 6.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Georg Fischer, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since FI-N is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on FI-N for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FI-N. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Georg Fischer. You can find everything you need to know about Georg Fischer in the latest infographic research report. If you are no longer interested in Georg Fischer, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.

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