Is Now An Opportune Moment To Examine Sony Group Corporation (TSE:6758)?

Sony Group Corporation (TSE:6758) saw a double-digit share price rise of over 10% in the past couple of months on the TSE. The recent jump in the share price has meant that the company is trading around its 52-week high. 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, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Sony Group’s outlook and valuation to see if the opportunity still exists.

See 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 3.4% below our intrinsic value, which means if you buy Sony Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth ¥3112.00, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Sony Group has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Sony Group?

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 profit growth of 4.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Sony Group, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in 6758’s future 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 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 6758, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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. At Simply Wall St, we found 1 warning sign for Sony Group and we think they deserve your attention.

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.