What This Means For YouĪre you a shareholder? SIE’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. This should lead to more robust cash flows, feeding into a higher share value. Siemens' earnings over the next few years are expected to increase by 47%, indicating a highly optimistic future ahead. 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. Can we expect growth from Siemens?įuture 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. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. This is because Siemens’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. Although, there may be an opportunity to buy in the future. And if you believe that the stock is really worth €182.15, then there isn’t much room for the share price grow beyond what it’s currently trading. It’s trading around 13% below my intrinsic value, which means if you buy Siemens today, you’d be paying a fair price for it. The stock seems fairly valued at the moment according to my valuation model. View our latest analysis for Siemens What's The Opportunity In Siemens? However, could the stock still be trading at a relatively cheap price? Let’s examine Siemens’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. Siemens Aktiengesellschaft ( ETR:SIE) saw a decent share price growth in the teens level on the XTRA over the last few months.
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