While Rexit Berhad (KLSE:REXIT) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM0.83 at one point, and dropping to the lows of RM0.76. 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 Rexit Berhad's current trading price of RM0.81 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 Rexit 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 Rexit Berhad
Is Rexit Berhad Still Cheap?
According to my valuation model, Rexit Berhad seems to be fairly priced at around 18.46% above my intrinsic value, which means if you buy Rexit Berhad today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is MYR0.69, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Rexit Berhad has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from Rexit Berhad?
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. Rexit Berhad'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? It seems like the market has already priced in REXIT’s positive outlook, 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 REXIT, 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.