Is Jilin OLED Material Tech Co., Ltd. (SHSE:688378) Potentially Undervalued?

While Jilin OLED Material Tech Co., Ltd. (SHSE:688378) might not have the largest market cap around , it saw significant share price movement during recent months on the SHSE, rising to highs of CN¥27.86 and falling to the lows of CN¥18.80. 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 Jilin OLED Material Tech's current trading price of CN¥18.80 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 Jilin OLED Material Tech’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Jilin OLED Material Tech

What Is Jilin OLED Material Tech Worth?

The stock is currently trading at CN¥18.80 on the share market, which means it is overvalued by 26% compared to our intrinsic value of CN¥14.94. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Jilin OLED Material Tech’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 does the future of Jilin OLED Material Tech look like?

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 profit expected to more than double over the next couple of years, the future seems bright for Jilin OLED Material Tech. 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? 688378’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 688378 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 an eye on 688378 for a while, 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 optimistic prospect is encouraging for 688378, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Our analysis shows 3 warning signs for Jilin OLED Material Tech (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com