At JP¥10,815, Is It Time To Put SCREEN Holdings Co., Ltd. (TSE:7735) On Your Watch List?

While SCREEN Holdings Co., Ltd. (TSE:7735) might not have the largest market cap around , it led the TSE gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the mid-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? Today we will analyse the most recent data on SCREEN Holdings’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for SCREEN Holdings

Is SCREEN Holdings Still Cheap?

Great news for investors – SCREEN Holdings is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is ¥16577.21, but it is currently trading at JP¥10,815 on the share market, meaning that there is still an opportunity to buy now. However, given that SCREEN Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of SCREEN Holdings look like?

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. SCREEN Holdings' earnings growth are expected to be in the teens in the upcoming years, 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? Since 7735 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 7735 for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 7735. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you'd like to know more about SCREEN Holdings as a business, it's important to be aware of any risks it's facing. Be aware that SCREEN Holdings is showing 3 warning signs in our investment analysis and 1 of those can't be ignored...

If you are no longer interested in SCREEN Holdings, 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.