Today’s closure of Esprinet could have important implications for the future of the title

The Esprinet stock has been in free fall for about a year, this decline does not come unexpectedly. After having marked its all-time high at the beginning of August 2021, in fact, a decline began which led to a decline of about 60%. Furthermore, the minimum of this decline was precisely marked during the week ending today. From this perspective, therefore, today’s closure of Esprinet could have important implications on the future of the title.

As can be seen from the graph, in fact, the weekly closing could be lower than the strong support offered by the first price target in the 7.56 euro area. In this case, the decline could continue to the next target in the 1.24 euro area.

Only a prompt recovery of the 7.56 euro area could favor a resumption of the rise and, therefore, create the conditions for a new attack on the all-time high of the stock.

The evaluation of the Esprinet stock

The stock has a very low valuation level, with a company value estimated at 0.02 times its turnover. Furthermore, in the last 12 months, analysts have largely revised upward the profitability estimates for the next financial statements. Again in the same period, the analysts have largely revised their opinion on the company in a positive way.

Whatever the indicator used, to analyze the financial statements according to the classic method, the valuation based on market multiples returns a highly undervalued security. Furthermore, the fair value, calculated using the discounted cash flow method, expresses an undervaluation of over 60%.

Another very interesting aspect of Esprinet is linked to the yield of its dividend which in recent years has always been above 7%. Estimates for the next few years, on the other hand, indicate a yield of around 8%.

As reported in international journals, the average consensus of analysts is to buy with an average target price that expresses an undervaluation of more than 110%.

Today’s closure of Esprinet could have important implications for the future of the title: the indications of the graphic analysis

The stock title Esprinet (MIL: PRT) closed the session on June 16 at € 7.355, down by 1.62% compared to the previous session.

Weekly time frame

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The results of the forecasts in this article are based on statistical calculations explained in the ebooks published by ProiezionidiBorsa and processed on the basis of the available price history. (We also remind you to carefully read the warnings regarding this article and the author’s responsibilities, which can be consulted HERE”)

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