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Beijing Urban Construction Design & Development Group Co., Limited (HKG:1599), which is in the construction business, and is based in Hong Kong, received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$3.55 at one point, and dropping to the lows of HK$2.15. 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 Beijing Urban Construction Design & Development Group's current trading price of HK$2.25 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 Beijing Urban Construction Design & Development Group’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 Beijing Urban Construction Design & Development Group
What is Beijing Urban Construction Design & Development Group worth?
Good news, investors! Beijing Urban Construction Design & Development Group is still a bargain right now. I’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 4.77x is currently well-below the industry average of 11.46x, meaning that it is trading at a cheaper price relative to its peers. However, given that Beijing Urban Construction Design & Development Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Beijing Urban Construction Design & Development Group?
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 51% over the next couple of years, the future seems bright for Beijing Urban Construction Design & Development Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.