Is It Time To Consider Buying BigBen Interactive (EPA:BIG)?

BigBen Interactive (EPA:BIG), might not be a large cap stock, but it saw significant share price movement during recent months on the ENXTPA, rising to highs of €5.54 and falling to the lows of €3.71. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether BigBen Interactive's current trading price of €3.71 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at BigBen Interactive’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for BigBen Interactive

Is BigBen Interactive Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.8% below my intrinsic value, which means if you buy BigBen Interactive today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €3.97, then there’s not much of an upside to gain from mispricing. Furthermore, BigBen Interactive’s low beta implies that the stock is less volatile than the wider market.

What does the future of BigBen Interactive 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 88% over the next couple of years, the future seems bright for BigBen Interactive. 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? BIG’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 track record of its management team. 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 an eye on BIG, now may not be the most optimal 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into BigBen Interactive, you'd also look into what risks it is currently facing. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in BigBen Interactive.

If you are no longer interested in BigBen Interactive, 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.