Lippo Malls Indonesia Retail Trust (SGX:D5IU), a reits company based in Singapore, received a lot of attention from a substantial price movement on the SGX in the over the last few months, increasing to SGD0.42 at one point, and dropping to the lows of SGD0.38. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Lippo Malls Indonesia Retail Trust’s current trading price of SGD0.4 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 Lippo Malls Indonesia Retail Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Lippo Malls Indonesia Retail Trust

Is Lippo Malls Indonesia Retail Trust still cheap?

Great news for investors – Lippo Malls Indonesia Retail Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is SGD0.64, but it is currently trading at S$0.40 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Lippo Malls Indonesia Retail Trust’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Lippo Malls Indonesia Retail Trust generate?

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. 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 Lippo Malls Indonesia Retail Trust, it is expected to deliver a relatively unexciting top-line growth of 7.06% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since D5IU is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.