At €116, Is It Time To Put Qt Group Oyj (HEL:QTCOM) On Your Watch List?

Qt Group Oyj (HEL:QTCOM), is not the largest company out there, but it received a lot of attention from a substantial price increase on the HLSE over the last few months. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Qt Group Oyj’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Qt Group Oyj

Is Qt Group Oyj still cheap?

Great news for investors – Qt Group Oyj is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €156.64, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Qt 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.

What kind of growth will Qt Group Oyj generate?

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 Qt Group 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? Since QTCOM 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 QTCOM for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy QTCOM. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Qt Group Oyj, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Qt Group Oyj, and understanding this should be part of your investment process.

If you are no longer interested in Qt 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.