Globetronics Technology Bhd. (KLSE:GTRONIC), is not the largest company out there, but it saw significant share price movement during recent months on the KLSE, rising to highs of RM1.17 and falling to the lows of RM0.51. 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 Globetronics Technology Bhd's current trading price of RM0.52 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 Globetronics Technology Bhd’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 Globetronics Technology Bhd
Is Globetronics Technology Bhd Still Cheap?
Great news for investors – Globetronics Technology Bhd is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 13.36x is currently well-below the industry average of 30.72x, meaning that it is trading at a cheaper price relative to its peers. Globetronics Technology Bhd’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Globetronics Technology Bhd 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. Globetronics Technology Bhd's earnings over the next few years are expected to increase by 34%, 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? Since GTRONIC is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit 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 price multiple.