Bukit Sembawang Estates Limited (SGX:B61), a real estate company based in Singapore, maintained its current share price over the past couple of month on the SGX, with a relatively tight range of SGD6 to SGD6.56. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Bukit Sembawang Estates’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Bukit Sembawang Estates

What’s the opportunity in Bukit Sembawang Estates?

Good news, investors! Bukit Sembawang Estates is still a bargain right now. According to my valuation, the intrinsic value for the stock is SGD12.26, but it is currently trading at S$6.06 on the share market, meaning that there is still an opportunity to buy now. Bukit Sembawang Estates’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.

Can we expect growth from Bukit Sembawang Estates?

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. With profit expected to more than double over the next couple of years, the future seems bright for Bukit Sembawang Estates. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since B61 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on B61 for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy B61. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bukit Sembawang Estates. You can find everything you need to know about Bukit Sembawang Estates in the latest infographic research report. If you are no longer interested in Bukit Sembawang Estates, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.