In This Article:
IREIT Global (SGX:UD1U), a reits company based in Singapore, maintained its current share price over the past couple of month on the SGX, with a relatively tight range of SGD0.76 to SGD0.82. 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 IREIT Global’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 IREIT Global
What’s the opportunity in IREIT Global?
Great news for investors – IREIT Global is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is SGD2.09, but it is currently trading at S$0.79 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, IREIT Global’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 IREIT Global 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 IREIT Global, it is expected to deliver a negative earnings growth of -18.18%, 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? Although UD1U is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to UD1U, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on UD1U for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on IREIT Global. You can find everything you need to know about IREIT Global in the latest infographic research report. If you are no longer interested in IREIT Global, 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.