ITWay’s recent stock market history is full of failed attempts to restart upwards. The last one we witnessed was about a month ago, when we were writing about the relaunch of ITWay shares which may have already run out.
This trend is the result of a very broad lateral trend which we will deal with in the section dedicated to graphic analysis.
How much is the stock worth according to market multiples?
The indications coming from the market multiples are not unique. For example, using one of the most well-known indicators used by investors, the price-to-earnings ratio, we see that the stock is overvalued by about 60%.
If, on the other hand, the ratio between price and turnover and the Price to Book ratio are considered, the stock appears to be undervalued. In particular, the price-to-turnover ratio is 0.4. A very low level not only compared to competitors, but in absolute terms. The fair value, calculated using the discounted cash flow method, also expresses an undervaluation of approximately 47%.
Before concluding, a note on the title. We remind you that ITWay is included in the CONSOB blacklist. However, it should be noted that its net financial position is not very worrying despite the alternation of months up and others down. Since January 2022, then, it has been stably positive, so there shouldn’t be any particular worries about the title.
At the end of June 2022, IT Way’s net financial position was positive for 1.59 million euros, an increase compared to the 314 thousand euros at the beginning of the year.
How to spot the next directional move on this stock? The indications of the graphic analysis
The title ITWay (MIL:ITW) closed the November 21 session at 1.634 euros, up 1.49% on the previous session.
As can be seen from the graph, for months now the quotations have been moving within a broad lateral movement identified by the levels of 1.49 euro and 1.762 euro. How to spot the next directional move on this stock? Only the break of one of the two indicated levels could give directionality to the stock.
On the upside, the possible scenario is indicated by the dotted line. On the downside, however, the solid line indicates the possible targets.