At €0.61, Is It Time To Put NYAB Oyj (HEL:NYAB) On Your Watch List?

While NYAB Oyj (HEL:NYAB) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the HLSE over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on NYAB Oyj’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for NYAB Oyj

What's The Opportunity In NYAB Oyj?

According to my valuation model, NYAB Oyj seems to be fairly priced at around 6.7% below my intrinsic value, which means if you buy NYAB Oyj today, you’d be paying a fair price for it. And if you believe the company’s true value is €0.65, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since NYAB Oyj’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 NYAB Oyj look like?

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. 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 NYAB Oyj. 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? NYAB’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on NYAB, 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 diving deeper into 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 NYAB Oyj as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for NYAB Oyj and you'll want to know about this.

If you are no longer interested in NYAB Oyj, 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.