At HK$1.83, Is It Time To Put Far East Consortium International Limited (HKG:35) On Your Watch List?

While Far East Consortium International Limited (HKG:35) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$2.09 at one point, and dropping to the lows of HK$1.79. 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 Far East Consortium International's current trading price of HK$1.83 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 Far East Consortium International’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 Far East Consortium International

Is Far East Consortium International Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12% below my intrinsic value, which means if you buy Far East Consortium International today, you’d be paying a fair price for it. And if you believe that the stock is really worth HK$2.07, then there’s not much of an upside to gain from mispricing. In addition to this, Far East Consortium International has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Far East Consortium International 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. Far East Consortium International's earnings growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? 35’s optimistic future growth appears to have been factored into the current share price, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on 35, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect 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.

If you want to dive deeper into Far East Consortium International, you'd also look into what risks it is currently facing. To that end, you should learn about the 4 warning signs we've spotted with Far East Consortium International (including 1 which is potentially serious).

If you are no longer interested in Far East Consortium International, 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.