Is It Too Late To Consider Buying Avary Holding(Shenzhen)Co., Limited (SZSE:002938)?

Let's talk about the popular Avary Holding(Shenzhen)Co., Limited (SZSE:002938). The company's shares saw a significant share price rise of 37% in the past couple of months on the SZSE. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap 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? Let’s examine Avary Holding(Shenzhen)Co’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Avary Holding(Shenzhen)Co

Is Avary Holding(Shenzhen)Co Still Cheap?

Great news for investors – Avary Holding(Shenzhen)Co is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is CN¥52.51, but it is currently trading at CN¥41.52 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Avary Holding(Shenzhen)Co’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Avary Holding(Shenzhen)Co 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 grow by 49% over the next couple of years, the future seems bright for Avary Holding(Shenzhen)Co. 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? Since 002938 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 002938 for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 002938. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you want to dive deeper into Avary Holding(Shenzhen)Co, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Avary Holding(Shenzhen)Co and we think they deserve your attention.

If you are no longer interested in Avary Holding(Shenzhen)Co, 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.