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Corporate Travel Management Limited (ASX:CTD), might not be a large cap stock, but it saw significant share price movement during recent months on the ASX, rising to highs of AU$20.97 and falling to the lows of AU$16.45. 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 Corporate Travel Management's current trading price of AU$16.93 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 Corporate Travel Management’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Corporate Travel Management
Is Corporate Travel Management Still Cheap?
Good news, investors! Corporate Travel Management is still a bargain right now. According to my valuation, the intrinsic value for the stock is A$23.44, but it is currently trading at AU$16.93 on the share market, meaning that there is still an opportunity to buy now. However, given that Corporate Travel Management’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 Corporate Travel Management?
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. With profit expected to more than double over the next couple of years, the future seems bright for Corporate Travel 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 CTD is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 CTD for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CTD. 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 investment decision.