Sasbadi Holdings Berhad (KLSE:SASBADI), is not the largest company out there, but it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.19 and falling to the lows of RM0.17. 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 Sasbadi Holdings Berhad's current trading price of RM0.18 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 Sasbadi Holdings Berhad’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 Sasbadi Holdings Berhad
What's The Opportunity In Sasbadi Holdings Berhad?
According to our valuation model, the stock is currently overvalued by about 36%, trading at RM0.18 compared to our intrinsic value of MYR0.13. This means that the opportunity to buy Sasbadi Holdings Berhad at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that Sasbadi Holdings Berhad’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Sasbadi Holdings Berhad 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. With profit expected to grow by 31% over the next year, the near-term future seems bright for Sasbadi Holdings Berhad. 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? SASBADI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe SASBADI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.