V.S. Industry Berhad (KLSE:VS), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the KLSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on V.S. Industry Berhad’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for V.S. Industry Berhad

What's The Opportunity In V.S. Industry Berhad?

Great news for investors – V.S. Industry Berhad is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is MYR1.20, but it is currently trading at RM0.88 on the share market, meaning that there is still an opportunity to buy now. However, given that V.S. Industry 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 V.S. Industry Berhad 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. V.S. Industry Berhad's earnings over the next few years are expected to increase by 83%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since VS 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 financial health to consider, which could explain the current undervaluation.

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