At UK£1.96, Is It Time To Put Trustpilot Group plc (LON:TRST) On Your Watch List?

While Trustpilot Group plc (LON:TRST) might not have the largest market cap around , it saw significant share price movement during recent months on the LSE, rising to highs of UK£2.72 and falling to the lows of UK£1.96. 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 Trustpilot Group's current trading price of UK£1.96 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 Trustpilot Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is Trustpilot Group Worth?

According to our valuation model, Trustpilot Group seems to be fairly priced at around 4.59% above our intrinsic value, which means if you buy Trustpilot Group today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is £1.87, there’s only an insignificant downside when the price falls to its real value. In addition to this, Trustpilot Group has a low beta, which suggests its share price is less volatile than the wider market.

View our latest analysis for Trustpilot Group

What kind of growth will Trustpilot Group generate?

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. Trustpilot Group's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in TRST’s positive outlook, 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 TRST, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecasts for Trustpilot Group mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Trustpilot Group, 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.