Is It Too Late To Consider Buying Suzuki Motor Corporation (TSE:7269)?

Let's talk about the popular Suzuki Motor Corporation (TSE:7269). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the TSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Suzuki Motor’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Suzuki Motor

What's The Opportunity In Suzuki Motor?

According to our valuation model, Suzuki Motor seems to be fairly priced at around 15% below our intrinsic value, which means if you buy Suzuki Motor today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth ¥1852.00, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Suzuki Motor’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Suzuki Motor 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. With profit expected to grow by a double-digit 12% over the next couple of years, the outlook is positive for Suzuki Motor. 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? 7269’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 7269, now may not be the most advantageous 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Suzuki Motor you should know about.

If you are no longer interested in Suzuki Motor, 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.