Is There Now An Opportunity In Renault SA (EPA:RNO)?

Explore Renault's Fair Values from the Community and select yours

Let's talk about the popular Renault SA (EPA:RNO). The company's shares saw significant share price movement during recent months on the ENXTPA, rising to highs of €49.54 and falling to the lows of €31.14. 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 Renault's current trading price of €32.65 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Renault’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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What Is Renault Worth?

Great news for investors – Renault is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is €44.25, but it is currently trading at €32.65 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Renault’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.

View our latest analysis for Renault

What kind of growth will Renault generate?

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. 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. With profit expected to grow by 67% over the next year, the near-term future seems bright for Renault. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since RNO is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

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

If you want to dive deeper into Renault, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with Renault (including 1 which is a bit unpleasant).

If you are no longer interested in Renault, 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.