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MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to US$21.18 at one point, and dropping to the lows of US$16.68. 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 MasterCraft Boat Holdings' current trading price of US$17.24 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 MasterCraft Boat Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What Is MasterCraft Boat Holdings Worth?
Good news, investors! MasterCraft Boat Holdings is still a bargain right now. According to our valuation, the intrinsic value for the stock is $22.50, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because MasterCraft Boat Holdings’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.
View our latest analysis for MasterCraft Boat Holdings
What kind of growth will MasterCraft Boat Holdings generate?
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. Though in the case of MasterCraft Boat Holdings, it is expected to deliver a relatively unexciting top-line growth of 1.6% over the next year, 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 MCFT is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MCFT for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MCFT. 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 buy.