At ₩15,550, Is It Time To Put Worldex Industry & Trading Co., Ltd. (KOSDAQ:101160) On Your Watch List?

Worldex Industry & Trading Co., Ltd. (KOSDAQ:101160), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the KOSDAQ. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Worldex Industry & Trading’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Worldex Industry & Trading

Is Worldex Industry & Trading still cheap?

According to my valuation model, Worldex Industry & Trading seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Worldex Industry & Trading today, you’d be paying a fair price for it. And if you believe that the stock is really worth ₩18587.58, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Worldex Industry & Trading’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.

What kind of growth will Worldex Industry & Trading 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. 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. Though in the case of Worldex Industry & Trading, it is expected to deliver a relatively unexciting top-line growth of 5.4% over the next year, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in A101160’s future 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on A101160, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

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. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Worldex Industry & Trading, 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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