Is It Time To Consider Buying Xpediator Plc (LON:XPD)?

Xpediator Plc (LON:XPD), might not be a large cap stock, but it 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? Today I will analyse the most recent data on Xpediator’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Xpediator

What Is Xpediator Worth?

Great news for investors – Xpediator is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is £0.46, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Xpediator’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 Xpediator generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 revenue growth of 0.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Xpediator, at least in the short term.

What This Means For You

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

Are you a potential investor? If you’ve been keeping an eye on XPD 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 XPD. 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 investment decision.

If you want to dive deeper into Xpediator, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Xpediator and you'll want to know about these.

If you are no longer interested in Xpediator, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.