Is There Now An Opportunity In accesso Technology Group plc (LON:ACSO)?

By
Simply Wall St
Published
May 26, 2020
AIM:ACSO
Source: Shutterstock

accesso Technology Group plc (LON:ACSO), which is in the software business, and is based in United Kingdom, received a lot of attention from a substantial price increase on the AIM over the last few months. 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? Let’s examine accesso Technology Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for accesso Technology Group

Is accesso Technology Group still cheap?

Great news for investors – accesso Technology Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is £5.28, but it is currently trading at UK£3.83 on the share market, meaning that there is still an opportunity to buy now. However, given that accesso Technology Group’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.

What kind of growth will accesso Technology Group generate?

AIM:ACSO Past and Future Earnings May 27th 2020
AIM:ACSO Past and Future Earnings May 27th 2020

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 10% over the next couple of years, the outlook is positive for accesso Technology Group. 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 ACSO is currently undervalued, it may be a great time to increase 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 ACSO for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ACSO. 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.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on accesso Technology Group. You can find everything you need to know about accesso Technology Group in the latest infographic research report. If you are no longer interested in accesso Technology Group, you can use our free platform to see my 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. 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. Thank you for reading.

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