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While Vertex Resource Group Ltd. (CVE:VTX) might not have the largest market cap around , it saw significant share price movement during recent months on the TSXV, rising to highs of CA$0.40 and falling to the lows of CA$0.27. 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 Vertex Resource Group's current trading price of CA$0.27 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 Vertex Resource Group’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 Vertex Resource Group
What Is Vertex Resource Group Worth?
Great news for investors – Vertex Resource Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is CA$0.42, but it is currently trading at CA$0.27 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Vertex Resource Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Vertex Resource Group?
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. 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. Though in the case of Vertex Resource Group, it is expected to deliver a relatively unexciting top-line growth of 5.1% over the next year, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since VTX is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on VTX for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VTX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.