Is It Time To Consider Buying Relais Group Oyj (HEL:RELAIS)?

Relais Group Oyj (HEL:RELAIS), might not be a large cap stock, but it saw a decent share price growth in the teens level on the HLSE over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Relais Group Oyj’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Relais Group Oyj

What Is Relais Group Oyj Worth?

Good news, investors! Relais Group Oyj is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €15.11, but it is currently trading at €11.80 on the share market, meaning that there is still an opportunity to buy now. However, given that Relais Group Oyj’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Relais Group Oyj?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Relais Group Oyj's earnings over the next few years are expected to increase by 88%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since RELAIS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on RELAIS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RELAIS. 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'd like to know more about Relais Group Oyj as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 3 warning signs for Relais Group Oyj and we think they deserve your attention.

If you are no longer interested in Relais Group 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.