Why Intesa Sanpaolo S.p.A. (BIT:ISP) Could Be Worth Watching
Intesa Sanpaolo S.p.A. (BIT:ISP) saw a decent share price growth in the teens level on the BIT over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Intesa Sanpaolo’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Intesa Sanpaolo
What is Intesa Sanpaolo worth?
Intesa Sanpaolo appears to be overvalued by 23% at the moment, based on my discounted cash flow valuation. The stock is currently priced at €2.54 on the market compared to my intrinsic value of €2.06. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Intesa Sanpaolo’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 Intesa Sanpaolo?
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. However, with a relatively muted profit growth of 5.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Intesa Sanpaolo, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in ISP’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 ISP 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 ISP 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Intesa Sanpaolo. You can find everything you need to know about Intesa Sanpaolo in the latest infographic research report. If you are no longer interested in Intesa Sanpaolo, 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.
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. Thank you for reading.
