What Is Ultimate Products Plc's (LON:ULTP) Share Price Doing?

While Ultimate Products Plc (LON:ULTP) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to UK£1.79 at one point, and dropping to the lows of UK£1.43. 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 Ultimate Products' current trading price of UK£1.43 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 Ultimate Products’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 Ultimate Products

What Is Ultimate Products Worth?

Great news for investors – Ultimate Products is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is £2.15, but it is currently trading at UK£1.43 on the share market, meaning that there is still an opportunity to buy now. However, given that Ultimate Products’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.

Can we expect growth from Ultimate Products?

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. However, with a relatively muted profit growth of 4.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Ultimate Products, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ULTP is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ULTP for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ULTP. 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.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. At Simply Wall St, we found 2 warning signs for Ultimate Products and we think they deserve your attention.

If you are no longer interested in Ultimate Products, 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.