At ₩14,710, Is It Time To Put Hankuk Carbon Co., Ltd. (KRX:017960) On Your Watch List?

While Hankuk Carbon Co., Ltd. (KRX:017960) might not have the largest market cap around , it led the KOSE gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. With many analysts covering the 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? Today we will analyse the most recent data on Hankuk Carbon’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Hankuk Carbon

What Is Hankuk Carbon Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.0% below our intrinsic value, which means if you buy Hankuk Carbon today, you’d be paying a fair price for it. And if you believe the company’s true value is ₩15316.14, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Hankuk Carbon’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Hankuk Carbon?

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. With profit expected to more than double over the next couple of years, the future seems bright for Hankuk Carbon. 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? A017960’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 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 A017960, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Hankuk Carbon as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with Hankuk Carbon, and understanding these should be part of your investment process.

If you are no longer interested in Hankuk Carbon, 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.