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IPD Group Limited (ASX:IPG), is not the largest company out there, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$5.18 and falling to the lows of AU$4.47. 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 IPD Group's current trading price of AU$4.52 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 IPD 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 IPD Group
What Is IPD Group Worth?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.9% below our intrinsic value, which means if you buy IPD Group today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth A$4.75, then there’s not much of an upside to gain from mispricing. Furthermore, IPD Group’s low beta implies that the stock is less volatile than the wider market.
What does the future of IPD 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. IPD Group's earnings over the next few years are expected to increase by 68%, 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? IPG’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 IPG, 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.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for IPD Group you should be aware of.