Impax Asset Management Group plc (AIM:IPX), a capital markets company based in United Kingdom, received a lot of attention from a substantial price movement on the AIM in the over the last few months, increasing to £2.1 at one point, and dropping to the lows of £1.43. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Impax Asset Management Group's current trading price of £1.56 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 Impax Asset Management Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Impax Asset Management Group
Is Impax Asset Management Group still cheap?According to my valuation model, the stock is currently overvalued by about 48%, trading at UK£1.56 compared to my intrinsic value of £1.05. Not the best news for investors looking to buy! Furthermore, Impax Asset Management Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What does the future of Impax Asset Management Group look like?Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 more than double over the next couple of years, the future seems bright for Impax Asset Management Group. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? IPX’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe IPX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on IPX for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for IPX, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Impax Asset Management Group. You can find everything you need to know about Impax Asset Management Group in the latest infographic research report. If you are no longer interested in Impax Asset Management Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.