Why TV18 Broadcast Limited (NSE:TV18BRDCST) Could Be Worth Watching

TV18 Broadcast Limited (NSE:TV18BRDCST), might not be a large cap stock, but it saw significant share price movement during recent months on the NSEI, rising to highs of ₹42.45 and falling to the lows of ₹34.60. 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 TV18 Broadcast's current trading price of ₹37.30 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 TV18 Broadcast’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 TV18 Broadcast

Is TV18 Broadcast Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11.72% above my intrinsic value, which means if you buy TV18 Broadcast today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is ₹33.39, there’s only an insignificant downside when the price falls to its real value. In addition to this, TV18 Broadcast has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from TV18 Broadcast?

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. With profit expected to grow by 24% over the next couple of years, the future seems bright for TV18 Broadcast. 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? It seems like the market has already priced in TV18BRDCST’s positive outlook, 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on TV18BRDCST, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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'd like to know more about TV18 Broadcast as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for TV18 Broadcast and we think they deserve your attention.

If you are no longer interested in TV18 Broadcast, 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.