Should You Investigate Hanwha Aerospace Co., Ltd. (KRX:012450) At ₩912,000?

Hanwha Aerospace Co., Ltd. (KRX:012450) saw a decent share price growth of 13% on the KOSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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, what if the stock is still a bargain? Let’s take a look at Hanwha Aerospace’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In Hanwha Aerospace?

The stock is currently trading at ₩912,000 on the share market, which means it is overvalued by 28% compared to our intrinsic value of ₩713772.07. Not the best news for investors looking to buy! Furthermore, Hanwha Aerospace’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.

Check out our latest analysis for Hanwha Aerospace

What does the future of Hanwha Aerospace look like?

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. Hanwha Aerospace's 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? It seems like the market has well and truly priced in A012450’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe A012450 should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on A012450 for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for A012450, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Hanwha Aerospace as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Hanwha Aerospace, and understanding this should be part of your investment process.

If you are no longer interested in Hanwha Aerospace, 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.