Trakm8 Holdings PLC (LON:TRAK), is not the largest company out there, but it saw significant share price movement during recent months on the AIM, rising to highs of UK£0.18 and falling to the lows of UK£0.14. 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 Trakm8 Holdings' current trading price of UK£0.15 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 Trakm8 Holdings’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 Trakm8 Holdings

What Is Trakm8 Holdings Worth?

According to my valuation model, Trakm8 Holdings seems to be fairly priced at around 10% below my intrinsic value, which means if you buy Trakm8 Holdings today, you’d be paying a fair price for it. And if you believe the company’s true value is £0.16, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Trakm8 Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Trakm8 Holdings look like?

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. Trakm8 Holdings' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TRAK’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on TRAK, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.