Is Now The Time To Look At Buying Shibaura Electronics Co.,Ltd. (TYO:6957)?

Shibaura Electronics Co.,Ltd. (TYO:6957), which is in the electronic business, and is based in Japan, received a lot of attention from a substantial price movement on the JASDAQ over the last few months, increasing to JP¥3,650 at one point, and dropping to the lows of JP¥2,412. 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 Shibaura ElectronicsLtd’s current trading price of JP¥2,507 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 Shibaura ElectronicsLtd’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Shibaura ElectronicsLtd

What is Shibaura ElectronicsLtd worth?

Good news, investors! Shibaura ElectronicsLtd is still a bargain right now. My valuation model shows that the intrinsic value for the stock is ¥4043.74, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Shibaura ElectronicsLtd’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Shibaura ElectronicsLtd look like?

JASDAQ:6957 Past and Future Earnings, March 4th 2020
JASDAQ:6957 Past and Future Earnings, March 4th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Shibaura ElectronicsLtd’s earnings over the next few years are expected to increase by 24%, 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? Since 6957 is currently undervalued, it may be a great time to accumulate more of 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 6957 for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 6957. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Shibaura ElectronicsLtd. You can find everything you need to know about Shibaura ElectronicsLtd in the latest infographic research report. If you are no longer interested in Shibaura ElectronicsLtd, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.