Internationella Engelska Skolan i Sverige Holdings II AB (publ) (STO:ENG), which is in the consumer services business, and is based in Sweden, saw significant share price volatility over the past couple of months on the OM, rising to the highs of SEK74.2 and falling to the lows of SEK60.8. 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 Internationella Engelska Skolan i Sverige Holdings II’s current trading price of SEK60.8 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 Internationella Engelska Skolan i Sverige Holdings II’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 Internationella Engelska Skolan i Sverige Holdings II
What’s the opportunity in Internationella Engelska Skolan i Sverige Holdings II?
Great news for investors – Internationella Engelska Skolan i Sverige Holdings II is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is SEK78.3, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Internationella Engelska Skolan i Sverige Holdings II’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.
Can we expect growth from Internationella Engelska Skolan i Sverige Holdings II?
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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 57% over the next couple of years, the future seems bright for Internationella Engelska Skolan i Sverige Holdings II. 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? Since ENG is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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.