Hyundai Rotem Company (KRX:064350) may not be a large-cap stock, but it has led the KOSE gainers with a relatively large price increase over the past few weeks. The recent price increases have brought the company back closer to its yearly high. With many analysts covering the mid-cap stock, we can assume that any price-relevant announcements have already been factored into the share price. But what if the stock is still a bargain? Let’s examine Hyundai Rotem’s valuation and outlook in more detail to see if there is still a bargain opportunity.
Check out our latest analysis for Hyundai Rotem
What is Hyundai Rotem worth?
The stock currently appears to be fairly valued according to our valuation model. It is trading about 16% below our intrinsic value, which means you would be paying a reasonable price for it if you buy Hyundai Rotem today. And if you believe the stock is really worth ₩61862.36, then there is not much room for the stock to rise beyond the current price. Is there another opportunity to buy cheap in the future? Since Hyundai Rotem’s share price is quite volatile, it could potentially fall (or rise) even further in the future, giving us another buying opportunity. This is based on its high beta, which is a good indicator of how much the stock moves relative to the rest of the market.
Can we expect growth from Hyundai Redem?
Future prospects are an important consideration when you’re looking to buy stocks, especially if you’re an investor looking for growth for your portfolio. Buying a great company with solid prospects at a cheap price is always a good investment. So let’s also take a look at the company’s future expectations. Hyundai Rotem’s earnings are expected to double over the next few years, suggesting a very optimistic future. This should lead to stronger cash flows and result in a higher share value.
What this means for you
Are you a shareholder? It seems like the market has already priced in A064350’s positive outlook, with shares trading around fair value. However, there are other important factors we haven’t considered today, such as the track record of the management team. Have these factors changed since you last looked at the stock? Will you have enough conviction to buy if the price fluctuates below true value?
Are you a potential investor? If you’ve been keeping an eye on A064350, now may not be the best time to buy as the stock is trading around its fair value. However, the positive outlook for the company is encouraging, meaning 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 dip.
It can be very valuable to look at what analysts expect for Hyundai Rotem based on their recent forecasts. At Simply Wall St, we have the analyst estimates which you can view here.
If you are no longer interested in Hyundai Rotem, you can view our list of over 50 other stocks with high growth potential on our free platform.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
