While FM Global Logistics Holdings Berhad (KLSE:FM) might not have the largest market cap around , it saw significant share price movement during recent months on the KLSE, rising to highs of RM0.69 and falling to the lows of RM0.57. 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 FM Global Logistics Holdings Berhad's current trading price of RM0.59 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 FM Global Logistics Holdings 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 FM Global Logistics Holdings Berhad
What Is FM Global Logistics Holdings Berhad Worth?
Good news, investors! FM Global Logistics Holdings Berhad is still a bargain right now. According to our valuation, the intrinsic value for the stock is MYR0.80, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that FM Global Logistics Holdings Berhad’s share price may be quite stable relative to the rest of 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 FM Global Logistics Holdings Berhad?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 40% over the next couple of years, the future seems bright for FM Global Logistics Holdings Berhad. 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 FM 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.