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M.T.I Wireless Edge Ltd. (LON:MWE), might not be a large cap stock, but it saw significant share price movement during recent months on the AIM, rising to highs of UK£0.47 and falling to the lows of UK£0.36. 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 M.T.I Wireless Edge's current trading price of UK£0.37 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 M.T.I Wireless Edge’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for M.T.I Wireless Edge
Is M.T.I Wireless Edge Still Cheap?
Great news for investors – M.T.I Wireless Edge is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is £0.53, but it is currently trading at UK£0.37 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because M.T.I Wireless Edge’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.
What kind of growth will M.T.I Wireless Edge generate?
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. 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. Though in the case of M.T.I Wireless Edge, it is expected to deliver a relatively unexciting earnings growth of 6.2%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since MWE is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MWE for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MWE. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.