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Jerash Holdings (US), Inc. (NASDAQ:JRSH), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$4.76 at one point, and dropping to the lows of US$3.78. 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 Jerash Holdings (US)'s current trading price of US$3.78 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 Jerash Holdings (US)’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 Jerash Holdings (US)
What Is Jerash Holdings (US) Worth?
The stock is currently trading at US$3.78 on the share market, which means it is overvalued by 32% compared to my intrinsic value of $2.86. This means that the opportunity to buy Jerash Holdings (US) at a good price has disappeared! Another thing to keep in mind is that Jerash Holdings (US)’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Can we expect growth from Jerash Holdings (US)?
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. In the upcoming year, Jerash Holdings (US)'s earnings are expected to increase by 32%, 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? JRSH’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe JRSH should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.