In the run-up to and after the three forecast increases in the last months, the Management still expected only with a turnover of up to 340 million euros, while profit was, however, a value of 88 million Euro. This forecast was duped with the figures now, once more, which could also suggest a certain Momentum.

nevertheless, the share does not come, in spite of these Figures, in the swing. Why? A good question that should occupy us more in detail Below. Since it is possible that there could be some solid reasons why Varta is currently course technically on the spot.

A first site, the evaluation of this dynamic growth story, for example. With growth rates of almost three percentage, in particular, profit growth, Varta certainly one of the greater success story of the last few months. However, the performance measure is still alarmingly high.

the market capitalization, for example, is 3.4 billion Euro, which means that Varta is currently valued at more than nine times the sales. The EBITDA multiplier is, however, on a 34.7-Fold, where we should at this point stress that it is the net profit, but merely to the operating result. Quite an expensive performance measure, which should still have priced in a greater part of the future prospects evaporated.

Which are, in turn, have been lately, it's not all sunshine and roses embossed. More critical reports and votes, in particular with regard to the competition, have proved in the last few weeks and months, more often as a price brake. May be Varta, so the analyses are not able to serve the high demand in some of the prominent large customers, which could potentially lead to losses in market shares. And to be more competitive in the international market, where we also should mention that Varta has a lot of popular Know-how in his Segment.

the Bottom line is that the Varta-share is therefore accepted in these days is a double-edged image. In operational terms, the growth is true in the market of battery solutions, as a glance at the provisional figures revealed very impressive. However, the rating is still high, and further, medium-term prospects could be impacted by the topic of competition for large customers.

Perhaps it is therefore time to examine the competitive advantage of Varta, to find out whether the tradition will be able to enforce German battery group in the long term. If Yes, might be the lower share prices, of course, in view of the mega market welcoming. Yes, even in spite of the high valuation, the stock currently, as in this case, the long-term potential, given the still comparatively low market seems to be capitalisation is not yet fully priced in.

Disclaimer: Vincent has none of the mentioned shares.

Motley Fool Germany 2020

Also interesting: PUSH - bargain find - German stock exchanges at record rates, but these shares are still cheap, The trading system of SSE takes the emotions out of the game. Now with a clear strategy to create! (Partner quote) Here is a 30-day free trial! René wants to return: So you can give your child to the age of 18. nearly 90,000 euros from the state FOCUS Online René wants to return: So you can give your child to the age of 18. nearly 90,000 euros from the state

*The contribution of "Operationally, it runs at Varta: Is the stock to be back in rally mode?" is published by Fool.de. Contact with the executives here.