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Today we're going to take a look at the well-established Techtronic Industries Company Limited (HKG:669). The company's stock led the SEHK gainers with a relatively large price hike in the past couple of weeks. As a large-cap 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 Techtronic Industries’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Techtronic Industries

What is Techtronic Industries worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.36% above my intrinsic value, which means if you buy Techtronic Industries today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth HK$59.59, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Techtronic Industries’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Techtronic Industries look like?

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. Techtronic Industries’s earnings over the next few years are expected to increase by 66%, 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? 669’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 669, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Techtronic Industries. You can find everything you need to know about Techtronic Industries in the latest infographic research report. If you are no longer interested in Techtronic Industries, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.