Tingyi (Cayman Islands) Holding Corp. (HKG:322), which is in the food business, and is based in China, saw a double-digit share price rise of over 10% in the past couple of months on the SEHK. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Tingyi (Cayman Islands) Holding’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Tingyi (Cayman Islands) Holding

What is Tingyi (Cayman Islands) Holding worth?

According to my valuation model, Tingyi (Cayman Islands) Holding seems to be fairly priced at around 8.1% below my intrinsic value, which means if you buy Tingyi (Cayman Islands) Holding today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth HK$13.15, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Tingyi (Cayman Islands) Holding’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 Tingyi (Cayman Islands) Holding look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Tingyi (Cayman Islands) Holding’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? 322’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 an eye on 322, 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 diving deeper into 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 Tingyi (Cayman Islands) Holding. You can find everything you need to know about Tingyi (Cayman Islands) Holding in the latest infographic research report. If you are no longer interested in Tingyi (Cayman Islands) Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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.

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. Thank you for reading.