While Kumpulan Perangsang Selangor Berhad (KLSE:KPS) might not have the largest market cap around , it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.83 and falling to the lows of RM0.72. 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 Kumpulan Perangsang Selangor Berhad's current trading price of RM0.78 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 Kumpulan Perangsang Selangor Berhad’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Kumpulan Perangsang Selangor Berhad

What Is Kumpulan Perangsang Selangor Berhad Worth?

Good news, investors! Kumpulan Perangsang Selangor Berhad is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 8.81x is currently well-below the industry average of 14.1x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Kumpulan Perangsang Selangor Berhad’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Kumpulan Perangsang Selangor Berhad?

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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Kumpulan Perangsang Selangor Berhad, at least in the near future.

What This Means For You

Are you a shareholder? Although KPS is currently trading below the industry PE ratio, the negative profit outlook does bring on some uncertainty, which equates to higher risk. We recommend you think about whether you want to increase your portfolio exposure to KPS, or whether diversifying into another stock may be a better move for your total risk and return.