Should You Investigate Autosports Group Limited (ASX:ASG) At AU$1.84?

Autosports Group Limited (ASX:ASG), 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$2.40 and falling to the lows of AU$1.84. 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 Autosports Group's current trading price of AU$1.84 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 Autosports Group’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 Autosports Group

What is Autosports Group worth?

Good news, investors! Autosports Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is A$2.49, but it is currently trading at AU$1.84 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Autosports 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.

What kind of growth will Autosports Group generate?

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. However, with a relatively muted profit growth of 7.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Autosports Group, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since ASG 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 ASG 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 ASG. 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 buy.

If you'd like to know more about Autosports Group as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Autosports Group has 3 warning signs and it would be unwise to ignore them.

If you are no longer interested in Autosports Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.