Fundamental analysis and charts say buy on Techedge

This company is one of those blessed by fortune where fundamental analysis and graphic analysis paint a picture all roses and flowers. In other words, whatever the aspect that is going to analyze the result that comes out is always the same: if you want to earn on the stock exchange you have to buy Techedge.

Before dealing with fundamental analysis, stock valuation and graphical analysis, we report what represents the only negative aspect of the stock: the distributed dividend. At present, in fact, the dividend yield is around 1% and no improvements are expected for the future. All this despite a pay-out of around 10%. There would therefore be room to increase it, but the company prefers to invest profits in growth and not in the remuneration of shareholders.

For the Techedge title sheet click here.

The evaluation of Techedge

We have estimated the company's valuation considering three different aspects: fair value, fundamental analysis ((PE, PEG and PB) and analysts' recommendations on Techedge.

According to the estimate of the fair value, shown in the following figure, the security appears to be undervalued by around 45%.

Things do not change if we consider the analysis of fundamentals. In this case, whatever the metrics used, Techedge is very undervalued.

Even following the analysts' Techedge recommendations, the result does not change. At the moment there is only one business house that covers the title. Also in this case. however, the company is highly undervalued, around 60% at current levels. The average consensus, then, is BUY.

According to the analysis of the value of the company, therefore, Techedge is one of the best investment ideas on the Italian Stock Exchange.

Graphic analysis and forecasting

Techedge (EDGE) closed the session on 25 October at € 4.90, down 1.01% compared to the previous session.

The current trend on the daily time frame is bullish and there are no more obstacles along the way that leads to the first price target in the € 5.2 area. The break at the end of the day at this level would then open the door to the achievement of the 2nd price target in the € 5.9 area. The maximum extension of the current increase is in the area € 6.5.

The bears could gain the upper hand with daily closures lower than € 4,766.