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While Flowtech Fluidpower plc (LON:FLO) might not have the largest market cap around , it saw significant share price movement during recent months on the AIM, rising to highs of UK£1.20 and falling to the lows of UK£0.83. 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 Flowtech Fluidpower's current trading price of UK£0.85 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 Flowtech Fluidpower’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 Flowtech Fluidpower
What Is Flowtech Fluidpower Worth?
Good news, investors! Flowtech Fluidpower is still a bargain right now. According to our valuation, the intrinsic value for the stock is £1.14, but it is currently trading at UK£0.85 on the share market, meaning that there is still an opportunity to buy now. However, given that Flowtech Fluidpower’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Flowtech Fluidpower?
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. With revenues expected to grow by a double-digit 15% over the next couple of years, the outlook is positive for Flowtech Fluidpower. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since FLO is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 FLO for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FLO. 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 buy.