Should You Think About Buying Aspocomp Group Oyj (HEL:ACG1V) Now?
Aspocomp Group Oyj (HEL:ACG1V), which is in the electronic business, and is based in Finland, saw significant share price movement during recent months on the HLSE, rising to highs of €6.72 and falling to the lows of €5.06. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Aspocomp Group Oyj's current trading price of €5.36 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Aspocomp Group Oyj’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Aspocomp Group Oyj
What's the opportunity in Aspocomp Group Oyj?
The stock is currently trading at €5.36 on the share market, which means it is overvalued by 39% compared to my intrinsic value of €3.85. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that Aspocomp Group Oyj’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Aspocomp Group Oyj?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Aspocomp Group Oyj, it is expected to deliver a negative earnings growth of -1.1%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? If you believe ACG1V should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on ACG1V for a while, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Aspocomp Group Oyj. You can find everything you need to know about Aspocomp Group Oyj in the latest infographic research report. If you are no longer interested in Aspocomp Group Oyj, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
