Is Now The Time To Look At Buying HAESUNG DS Co., Ltd. (KRX:195870)?

HAESUNG DS Co., Ltd. (KRX:195870), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the KOSE over the last few months. 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? Let’s examine HAESUNG DS’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for HAESUNG DS

What's the opportunity in HAESUNG DS?

According to my valuation model, HAESUNG DS seems to be fairly priced at around 9.11% above my intrinsic value, which means if you buy HAESUNG DS today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth ₩30336.08, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because HAESUNG DS’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 HAESUNG DS look like?

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. HAESUNG DS' earnings over the next few years are expected to increase by 45%, 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? It seems like the market has already priced in A195870’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 A195870, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 2 warning signs for HAESUNG DS and you'll want to know about them.

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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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