Is It Too Late To Consider Buying Sony Group Corporation (TSE:6758)?

Today we're going to take a look at the well-established Sony Group Corporation (TSE:6758). The company's stock saw significant share price movement during recent months on the TSE, rising to highs of JP¥14,800 and falling to the lows of JP¥12,745. 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 Sony Group's current trading price of JP¥13,205 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Sony Group’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 Sony Group

What's The Opportunity In Sony Group?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 5.98% above our intrinsic value, which means if you buy Sony Group today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth ¥12459.85, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Sony Group’s low beta implies that the stock is less volatile than the wider market.

What does the future of Sony Group look like?

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. Sony Group's earnings over the next few years are expected to increase by 36%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in 6758’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 6758, 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 further examining 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 Sony Group, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Sony Group you should be aware of.

If you are no longer interested in Sony Group, 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.