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Malaysian Resources Corporation Berhad (KLSE:MRCB), is not the largest company out there, but it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.34 and falling to the lows of RM0.30. 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 Malaysian Resources Corporation Berhad's current trading price of RM0.31 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 Malaysian Resources Corporation Berhad’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 Malaysian Resources Corporation Berhad
What Is Malaysian Resources Corporation Berhad Worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.7% below my intrinsic value, which means if you buy Malaysian Resources Corporation Berhad today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth MYR0.32, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Malaysian Resources Corporation Berhad’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.
Can we expect growth from Malaysian Resources Corporation 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. Malaysian Resources Corporation Berhad's earnings over the next few years are expected to increase by 51%, 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? It seems like the market has already priced in MRCB’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?