Is There Now An Opportunity In Iljin Electric Co.,Ltd (KRX:103590)?

While Iljin Electric Co.,Ltd (KRX:103590) might not have the largest market cap around , it saw a significant share price rise of 60% in the past couple of months on the KOSE. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on Iljin ElectricLtd’s outlook and valuation to see if the opportunity still exists.

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What's The Opportunity In Iljin ElectricLtd?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.23% above our intrinsic value, which means if you buy Iljin ElectricLtd today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth ₩50170.68, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Iljin ElectricLtd’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

See our latest analysis for Iljin ElectricLtd

What kind of growth will Iljin ElectricLtd generate?

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. Iljin ElectricLtd's earnings over the next few years are expected to increase by 60%, 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? It seems like the market has already priced in A103590’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 an eye on A103590, now may not be the most optimal 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Every company has risks, and we've spotted 1 warning sign for Iljin ElectricLtd you should know about.

If you are no longer interested in Iljin ElectricLtd, 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.