Money3 Corporation Limited (ASX:MNY), a consumer finance company based in Australia, saw significant share price volatility over the past couple of months on the ASX, rising to the highs of A$1.95 and falling to the lows of A$1.66. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Money3’s current trading price of A$1.8 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 Money3’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Money3

What is Money3 worth?

Good news, investors! Money3 is still a bargain right now. According to my valuation, the intrinsic value for the stock is A$2.96, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Money3’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will Money3 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. With profit expected to grow by 21.68% over the next couple of years, the future seems bright for Money3. 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 MNY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MNY for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MNY. 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 buy.