Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA), is not the largest company out there, but it maintained its current share price over the past couple of month on the XTRA, with a relatively tight range of €16.32 to €17.00. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hamburger Hafen und Logistik’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 Hamburger Hafen und Logistik

What Is Hamburger Hafen und Logistik Worth?

Hamburger Hafen und Logistik is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 36.53x is currently well-above the industry average of 16.12x, meaning that it is trading at a more expensive price relative to its peers. But, is there another opportunity to buy low in the future? Given that Hamburger Hafen und Logistik’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Hamburger Hafen und Logistik 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 more than double over the next couple of years, the future seems bright for Hamburger Hafen und Logistik. 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? It seems like the market has well and truly priced in HHFA’s positive outlook, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe HHFA should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio 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 an eye on HHFA for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for HHFA, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Hamburger Hafen und Logistik, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for Hamburger Hafen und Logistik you should be mindful of and 1 of them is a bit unpleasant.

If you are no longer interested in Hamburger Hafen und Logistik, 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.