Is Now The Time To Look At Buying Badger Infrastructure Solutions Ltd. (TSE:BDGI)?

Badger Infrastructure Solutions Ltd. (TSE:BDGI), is not the largest company out there, but it received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$36.62 at one point, and dropping to the lows of CA$27.85. 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 Badger Infrastructure Solutions' current trading price of CA$30.10 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 Badger Infrastructure Solutions’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 Badger Infrastructure Solutions

Is Badger Infrastructure Solutions still cheap?

Badger Infrastructure Solutions appears to be overvalued by 23% at the moment, based on my discounted cash flow valuation. The stock is currently priced at CA$30.10 on the market compared to my intrinsic value of CA$24.46. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Badger Infrastructure Solutions’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 Badger Infrastructure Solutions generate?

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 revenues expected to grow by 49% over the next couple of years, the future seems bright for Badger Infrastructure Solutions. If the level of expenses is able to be maintained, 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? BDGI’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe BDGI 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.

Are you a potential investor? If you’ve been keeping tabs on BDGI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for BDGI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Badger Infrastructure Solutions, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Badger Infrastructure Solutions and you'll want to know about these.

If you are no longer interested in Badger Infrastructure Solutions, 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.