At €22.20, Is Boreo Oyj (HEL:BOREO) Worth Looking At Closely?

Boreo Oyj (HEL:BOREO), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the HLSE. While good news for shareholders, the company has traded much higher in the past year. 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 we will analyse the most recent data on Boreo Oyj’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Boreo Oyj

Is Boreo Oyj Still Cheap?

Great news for investors – Boreo Oyj is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is €34.52, but it is currently trading at €22.20 on the share market, meaning that there is still an opportunity to buy now. However, given that Boreo 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 does the future of Boreo Oyj look like?

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. Boreo Oyj's earnings over the next few years are expected to increase by 42%, 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 BOREO is currently undervalued, it may be a great time to increase 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 BOREO 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 BOREO. 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 investment decision.

If you want to dive deeper into Boreo Oyj, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 4 warning signs for Boreo Oyj (of which 1 is a bit concerning!) you should know about.

If you are no longer interested in Boreo 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.