At ₩142,700, Is LS ELECTRIC Co., Ltd. (KRX:010120) Worth Looking At Closely?

LS ELECTRIC Co., Ltd. (KRX:010120), is not the largest company out there, but it saw significant share price movement during recent months on the KOSE, rising to highs of ₩200,500 and falling to the lows of ₩133,000. 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 LS ELECTRIC's current trading price of ₩142,700 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at LS ELECTRIC’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 LS ELECTRIC

What Is LS ELECTRIC Worth?

Great news for investors – LS ELECTRIC is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is ₩231561.51, but it is currently trading at ₩142,700 on the share market, meaning that there is still an opportunity to buy now. LS ELECTRIC’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from LS ELECTRIC?

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. LS ELECTRIC's earnings over the next few years are expected to increase by 46%, 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 A010120 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on A010120 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy A010120. 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.

If you'd like to know more about LS ELECTRIC as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for LS ELECTRIC you should know about.

If you are no longer interested in LS ELECTRIC, 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.