Beijing Capital International Airport Company Limited (HKG:694), which is in the infrastructure business, and is based in China, received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$7 at one point, and dropping to the lows of HK$5.94. 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 Beijing Capital International Airport's current trading price of HK$5.94 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Beijing Capital International Airport’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 Beijing Capital International Airport

Is Beijing Capital International Airport still cheap?

According to my valuation model, Beijing Capital International Airport seems to be fairly priced at around 10.63% above my intrinsic value, which means if you buy Beijing Capital International Airport today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is HK$5.37, then there isn’t really any room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Beijing Capital International Airport’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Beijing Capital International Airport look like?

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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Beijing Capital International Airport, at least in the near future.

What this means for you:

Are you a shareholder? Currently, 694 appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.