Cohort plc (LON:CHRT), is not the largest company out there, but it received a lot of attention from a substantial price movement on the AIM over the last few months, increasing to UK£6.39 at one point, and dropping to the lows of UK£5.64. 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 Cohort's current trading price of UK£6.16 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 Cohort’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 Cohort
What is Cohort worth?
Great news for investors – Cohort is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is £8.70, but it is currently trading at UK£6.16 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Cohort’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Cohort 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. With profit expected to grow by 54% over the next couple of years, the future seems bright for Cohort. 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 CHRT 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CHRT 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 CHRT. 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.
It can be quite valuable to consider what analysts expect for Cohort from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.
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This article by Simply Wall St is general in nature. 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.
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About AIM:CHRT
Cohort
Provides a various products and services in defense, security, and related markets in the United Kingdom, Germany, Portugal, Africa, North and South America, and the Asia Pacific and Africa, and other European countries.
Flawless balance sheet with solid track record and pays a dividend.
