United U-LI Corporation Berhad (KLSE:ULICORP), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM2.24 at one point, and dropping to the lows of RM1.71. 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 United U-LI Corporation Berhad's current trading price of RM1.80 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 United U-LI Corporation Berhad’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 United U-LI Corporation Berhad

What's The Opportunity In United U-LI Corporation Berhad?

The stock is currently trading at RM1.80 on the share market, which means it is overvalued by 23% compared to our intrinsic value of MYR1.47. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that United U-LI Corporation Berhad’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.

What does the future of United U-LI Corporation Berhad 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. In the upcoming year, United U-LI Corporation Berhad's earnings are expected to increase by 37%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in ULICORP’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe ULICORP should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.