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Quartix Technologies plc (LON:QTX), is not the largest company out there, but it received a lot of attention from a substantial price increase on the AIM over the last few months. While good news for shareholders, the company has traded much higher in the past year. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Quartix Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Quartix Technologies
What Is Quartix Technologies Worth?
Good news, investors! Quartix Technologies is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is £2.97, but it is currently trading at UK£1.79 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 Quartix Technologies’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 Quartix Technologies 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. 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 25% over the next couple of years, the outlook is positive for Quartix Technologies. 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 QTX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on QTX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy QTX. 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.