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LoopUp Group plc (LON:LOOP), which is in the software business, and is based in United Kingdom, saw significant share price movement during recent months on the AIM, rising to highs of £3.77 and falling to the lows of £2.95. 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 LoopUp Group's current trading price of £3.18 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 LoopUp Group’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 LoopUp Group
What's the opportunity in LoopUp Group?
Good news, investors! LoopUp Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is £4.57, 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, LoopUp Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of LoopUp Group look like?
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 more than double over the next couple of years, the future seems bright for LoopUp Group. 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 LOOP 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 LOOP for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LOOP. 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 buy.