At ₩63,400, Is It Time To Put AMOREPACIFIC Group (KRX:002790) On Your Watch List?

While AMOREPACIFIC Group (KRX:002790) might not be the most widely known stock at the moment, it led the KOSE gainers with a relatively large price hike in the past couple of weeks. 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? Let’s examine AMOREPACIFIC Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for AMOREPACIFIC Group

What's the opportunity in AMOREPACIFIC Group?

According to my valuation model, AMOREPACIFIC Group seems to be fairly priced at around 1.98% above my intrinsic value, which means if you buy AMOREPACIFIC Group today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth ₩62168.44, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, AMOREPACIFIC Group has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of AMOREPACIFIC Group 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. With profit expected to more than double over the next couple of years, the future seems bright for AMOREPACIFIC Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? A002790’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on A002790, 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.

If you want to dive deeper into AMOREPACIFIC Group, you'd also look into what risks it is currently facing. Case in point: We've spotted 4 warning signs for AMOREPACIFIC Group you should be aware of.

If you are no longer interested in AMOREPACIFIC Group, 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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