In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Mycronic AB (publ) (STO:MYCR), which is in the electronic business, and is based in Sweden, saw significant share price movement during recent months on the OM, rising to highs of SEK138.2 and falling to the lows of SEK112.8. 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 Mycronic's current trading price of SEK112.8 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 Mycronic’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Mycronic
What is Mycronic worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 16.41% above my intrinsic value, which means if you buy Mycronic today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is SEK96.9, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Mycronic’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 Mycronic?
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. Though in the case of Mycronic, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? MYCR seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.