AURIS MEDICAL (EARS)

[Triple9]

$EARS should have some news due in Q4 on Phase 3 AM-111 HEALOS for Acute inner ear hearing loss.

Auris Medical Holding AG (NASDAQ:EARS), a pharmaceuticals, biotechnology and life sciences company based in Switzerland, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGM. Less covered, small-stocks like EARS sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could EARS still be trading at a low price relative to its actual value? Let’s take a look at EARS’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Auris Medical Holding

What is EARS worth?

Great news for investors – EARS is still trading at a fairly cheap price. I’ve used the price-to-book ratio in this instance because there’s not enough visibility to forecast its cash flows, and its earnings doesn’t seem to reflect its true value. The stock’s ratio of 5.7x is currently well-below the industry average of 10.5x, meaning that it is trading at a cheaper price relative to its peers. EARS’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of EARS look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a negative profit growth of -3.72% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for EARS. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although EARS is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to EARS, or whether diversifying into another stock may be a better move for your total risk and return.

https://finance.yahoo.com/news/why-auris-medical-holding-ag-000710632.html