While Centaur Media Plc (LON:CAU) might not have the largest market cap around , it saw significant share price movement during recent months on the LSE, rising to highs of UK£0.32 and falling to the lows of UK£0.22. 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 Centaur Media's current trading price of UK£0.22 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 Centaur Media’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Centaur Media

What's The Opportunity In Centaur Media?

Great news for investors – Centaur Media is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Centaur Media’s ratio of 7.07x is below its peer average of 15.3x, which indicates the stock is trading at a lower price compared to the Media industry. Another thing to keep in mind is that Centaur Media’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 industry peers, 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.

Can we expect growth from Centaur Media?

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 Centaur Media, at least in the near future.

What This Means For You

Are you a shareholder? Although CAU is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to CAU, or whether diversifying into another stock may be a better move for your total risk and return.