When Should You Buy HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (KRX:009540)?

While HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (KRX:009540) might not have the largest market cap around , it led the KOSE gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. 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. But what if there is still an opportunity to buy? Today we will analyse the most recent data on HD Korea Shipbuilding & Offshore Engineering’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for HD Korea Shipbuilding & Offshore Engineering

What's The Opportunity In HD Korea Shipbuilding & Offshore Engineering?

According to our valuation model, HD Korea Shipbuilding & Offshore Engineering seems to be fairly priced at around 8.31% above our intrinsic value, which means if you buy HD Korea Shipbuilding & Offshore Engineering today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth ₩146614.66, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since HD Korea Shipbuilding & Offshore Engineering’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 kind of growth will HD Korea Shipbuilding & Offshore Engineering generate?

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. 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. HD Korea Shipbuilding & Offshore Engineering's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger 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 A009540’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on A009540, 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.

Diving deeper into the forecasts for HD Korea Shipbuilding & Offshore Engineering mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in HD Korea Shipbuilding & Offshore Engineering, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com