Why Netmarble Corporation (KRX:251270) Could Be Worth Watching

Netmarble Corporation (KRX:251270), might not be a large cap stock, but it saw significant share price movement during recent months on the KOSE, rising to highs of ₩69,400 and falling to the lows of ₩52,800. 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 Netmarble's current trading price of ₩55,400 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Netmarble’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 Netmarble

What Is Netmarble Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.23% above our intrinsic value, which means if you buy Netmarble today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is ₩49808.41, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Netmarble’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Netmarble generate?

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. 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. Netmarble's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to 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 A251270’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 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 tabs on A251270, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

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. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Netmarble, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com