Is Now The Time To Look At Buying Grand Korea Leisure Co., Ltd. (KRX:114090)?

While Grand Korea Leisure Co., Ltd. (KRX:114090) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the KOSE, rising to highs of ₩17,350 and falling to the lows of ₩15,300. 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 Grand Korea Leisure's current trading price of ₩16,250 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 Grand Korea Leisure’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 Grand Korea Leisure

What's the opportunity in Grand Korea Leisure?

According to my valuation model, Grand Korea Leisure seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Grand Korea Leisure today, you’d be paying a fair price for it. And if you believe that the stock is really worth ₩18746.47, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Grand Korea Leisure’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Grand Korea Leisure?

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. 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. However, with an extremely negative double-digit change in profit expected next year, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Grand Korea Leisure, at least in the near future.

What this means for you:

Are you a shareholder? Currently, A114090 appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on A114090 for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on A114090 should the price fluctuate below its true value.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Grand Korea Leisure, 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. 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.
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