Magnum Ice Cream (ENXTAM:MICC) Valuation Check As Momentum Cools After Recent Share Price Moves

Why Magnum Ice Cream Is Drawing Attention Now

Magnum Ice Cream (ENXTAM:MICC) is back on investor radars after recent share price moves, with a small daily decline and a week of softer performance contrasting with a slight gain over the past month.

See our latest analysis for Magnum Ice Cream.

That softer 7 day share price return of 4.19% and a year to date share price return of 1.88% sit against a broadly flat 30 day share price return of 0.59%. This hints that recent selling has cooled earlier momentum around Magnum Ice Cream while investors reassess growth potential and risks at the current €13.046 share price.

If this kind of mixed momentum has you reassessing your watchlist, it could be a good time to broaden your search and check out fast growing stocks with high insider ownership.

With Magnum Ice Cream trading at €13.046, revenue of €8,056 and net income of €581, along with a price target of €15.25 and an intrinsic value estimate implying a 68% discount, is this a genuine opportunity or is future growth already priced in?

Price-To-Earnings of 13.7x: Is It Justified?

At a last close of €13.046, Magnum Ice Cream is trading on a P/E of 13.7x, which sits below both its peer group and the wider European Food industry.

The P/E ratio tells you how much investors are paying for each euro of earnings, and it is a common way to compare companies in the same sector. For Magnum Ice Cream, this means the current share price reflects earnings that, based on available data, the market is valuing at a discount to similar businesses.

Magnum Ice Cream is flagged as good value on this 13.7x P/E when lined up against the European Food industry average of 15.9x and an even higher peer average of 21.4x. That is a clear valuation gap, suggesting investors are currently paying less for each euro of Magnum Ice Cream earnings than for the earnings of sector and peer companies.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 13.7x (UNDERVALUED)

However, you also need to weigh risks such as the 1.88% year to date share price decline and any potential pressure on margins from the €8,056 revenue base.

Find out about the key risks to this Magnum Ice Cream narrative.

Another View: What Our DCF Model Suggests

The SWS DCF model paints a very different picture to the 13.7x P/E. On this view, Magnum Ice Cream at €13.05 is trading well below an estimated fair value of €41.23, which implies a very large gap between price and that model’s estimate.

That kind of gap can signal either a potential opportunity or a sign that the model is too optimistic about future cash flows and risks. It raises a simple question for you: which story do you trust more right now, the earnings multiple or the cash flow model?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Magnum Ice Cream for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Magnum Ice Cream Narrative

If you would rather test the numbers yourself and see whether the story stacks up differently in your eyes, you can build a version tailored to your view in just a few minutes, starting with Do it your way.

A great starting point for your Magnum Ice Cream research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking For More Investment Ideas?

If Magnum Ice Cream has sparked your interest, do not stop here. The next opportunity you add to your watchlist could come from a completely different corner of the market.

• Spot potential bargain entries by scanning these 877 undervalued stocks based on cash flows that line up price with underlying cash flows and financial quality.
• Ride major technology shifts by zeroing in on these 26 AI penny stocks that are shaping how data, automation, and machine learning reach everyday users.
• Amplify your income focus by filtering for these 11 dividend stocks with yields > 3% that combine higher yields with listed, publicly traded businesses.

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.

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