When Should You Buy Bragg Gaming Group Inc. (TSE:BRAG)?

Bragg Gaming Group Inc. (TSE:BRAG), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the TSX over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Bragg Gaming Group’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Bragg Gaming Group

What's The Opportunity In Bragg Gaming Group?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19% below my intrinsic value, which means if you buy Bragg Gaming Group today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth CA$8.29, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Bragg Gaming Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Bragg Gaming Group?

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. With revenues expected to grow by a double-digit 27% over the next couple of years, the outlook is positive for Bragg Gaming Group. 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? BRAG’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on BRAG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Bragg Gaming Group as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Bragg Gaming Group has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in Bragg Gaming 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.