Is It Too Late To Consider Buying UP Global Sourcing Holdings plc (LON:UPGS)?

UP Global Sourcing Holdings plc (LON:UPGS), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the LSE. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on UP Global Sourcing Holdings’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for UP Global Sourcing Holdings

What Is UP Global Sourcing Holdings Worth?

Great news for investors – UP Global Sourcing Holdings is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is £2.42, but it is currently trading at UK£1.65 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, UP Global Sourcing Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from UP Global Sourcing Holdings?

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. 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 revenues expected to grow by a double-digit 14% over the next couple of years, the outlook is positive for UP Global Sourcing Holdings. If the level of expenses is able to be maintained, 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 UPGS 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 financial health to consider, which could explain the current undervaluation.

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

If you want to dive deeper into UP Global Sourcing Holdings, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for UP Global Sourcing Holdings you should be mindful of and 1 of them is a bit concerning.

If you are no longer interested in UP Global Sourcing Holdings, 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.