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While Cleanaway Waste Management Limited (ASX:CWY) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the ASX. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Cleanaway Waste Management’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Cleanaway Waste Management
What is Cleanaway Waste Management worth?
Great news for investors – Cleanaway Waste Management is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is A$4.06, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Cleanaway Waste Management’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 true value, 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.
Can we expect growth from Cleanaway Waste Management?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 profit expected to grow by 60% over the next couple of years, the future seems bright for Cleanaway Waste Management. 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 CWY 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CWY for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CWY. 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.