Should You Investigate NAVER Corporation (KRX:035420) At ₩187,400?

Let's talk about the popular NAVER Corporation (KRX:035420). The company's shares received a lot of attention from a substantial price movement on the KOSE over the last few months, increasing to ₩231,500 at one point, and dropping to the lows of ₩182,600. 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 NAVER's current trading price of ₩187,400 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at NAVER’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for NAVER

Is NAVER Still Cheap?

According to our valuation model, NAVER seems to be fairly priced at around 20% below our intrinsic value, which means if you buy NAVER today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ₩232969.75, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, NAVER’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from NAVER?

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 grow by 71% over the next couple of years, the future seems bright for NAVER. 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? A035420’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 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 tabs on A035420, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for NAVER from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in NAVER, 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.