At ₩75,000, Is It Time To Put KoMiCo Ltd. (KOSDAQ:183300) On Your Watch List?

KoMiCo Ltd. (KOSDAQ:183300), is not the largest company out there, but it led the KOSDAQ gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. Less-covered, small caps sees 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? Today we will analyse the most recent data on KoMiCo’s outlook and valuation to see if the opportunity still exists.

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What's The Opportunity In KoMiCo?

According to our valuation model, KoMiCo seems to be fairly priced at around 0.50% above our intrinsic value, which means if you buy KoMiCo today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is ₩74627.78, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that KoMiCo’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

View our latest analysis for KoMiCo

What kind of growth will KoMiCo generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 50% over the next couple of years, the future seems bright for KoMiCo. 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? It seems like the market has already priced in A183300’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 an eye on A183300, 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.

If you want to dive deeper into KoMiCo, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for KoMiCo you should be mindful of and 1 of these is concerning.

If you are no longer interested in KoMiCo, 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.