UNIQA Insurance Group AG (VIE:UQA), a insurance company based in Austria, saw significant share price volatility over the past couple of months on the WBAG, rising to the highs of €10.46 and falling to the lows of €7.8. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether UNIQA Insurance Group’s current trading price of €8.21 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at UNIQA Insurance Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for UNIQA Insurance Group

What’s the opportunity in UNIQA Insurance Group?

According to my valuation model, UNIQA Insurance Group seems to be fairly priced at around 10.94% below my intrinsic value, which means if you buy UNIQA Insurance Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth €9.22, then there’s not much of an upside to gain from mispricing. Furthermore, it seems like UNIQA Insurance Group’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What does the future of UNIQA Insurance Group look like?

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 a double-digit 16.31% over the next couple of years, the outlook is positive for UNIQA Insurance Group. 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 already priced in UQA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on UQA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, 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 UNIQA Insurance Group. You can find everything you need to know about UNIQA Insurance Group in the latest infographic research report. If you are no longer interested in UNIQA Insurance Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.