While Cedar Woods Properties Limited (ASX:CWP) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the ASX over the last few months. Less-covered, small caps 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 the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Cedar Woods Properties’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Cedar Woods Properties

What's the opportunity in Cedar Woods Properties?

Great news for investors – Cedar Woods Properties is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is A$8.41, but it is currently trading at AU$5.70 on the share market, meaning that there is still an opportunity to buy now. Cedar Woods Properties’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 Cedar Woods Properties?

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 Cedar Woods Properties. It looks like higher cash flow 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 CWP is currently undervalued, it may be a great time to increase 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 CWP for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CWP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.