Is Now The Time To Look At Buying KRAFTON, Inc. (KRX:259960)?

Today we're going to take a look at the well-established KRAFTON, Inc. (KRX:259960). The company's stock received a lot of attention from a substantial price increase on the KOSE over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine KRAFTON’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for KRAFTON

What Is KRAFTON Worth?

Great news for investors – KRAFTON is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is ₩596940.63, but it is currently trading at ₩375,000 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because KRAFTON’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of KRAFTON 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. KRAFTON's earnings over the next few years are expected to increase by 62%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since A259960 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on A259960 for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy A259960. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

It can be quite valuable to consider what analysts expect for KRAFTON from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in KRAFTON, 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.