Pirelli & Fair Value
PI
The fair market value of PIRC.MI stock is 5.56 EUR. Relative to the market price of 5.45 EUR Pirelli & C SpA is undervalued by 2%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Pirelli & Valuation
Current PIRC.MI share ticker price is 5.45 EUR.
The fair value level of 5.56 EUR can be considered as an effective entry point for long-term investors to start investing in PIRC.MI stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 2% lower its fair value
Current price is 17% higher its minimum value
Current price is 223% lower its maximum value
Market price:
PIRC.MI stock is undervalued
It means the current price may concern as a Moderate Risk Entry Point
Pirelli & C SpA Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
24.58
2
Median P/E over 5 years
7.75
3
Minimum P/E over 5 years
6.29
4
Earning per share (last 12 months)
0.72 EUR
Maximum value
1
x
4
=
17.63 EUR
Fair value
2
x
4
=
5.56 EUR
Minimum value
3
x
4
=
4.52 EUR
Pirelli & C SpA price metrics
-0.9
Annual return (geometric mean)
35.5
Risk (standard deviation) of returns
β
0.8
Beta (volatility compared to market)