At ₩161,000, Is Hyundai Autoever Corporation (KRX:307950) Worth Looking At Closely?

Hyundai Autoever Corporation (KRX:307950), 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. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Hyundai Autoever’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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What's The Opportunity In Hyundai Autoever?

According to our valuation model, Hyundai Autoever seems to be fairly priced at around 12% below our intrinsic value, which means if you buy Hyundai Autoever today, you’d be paying a fair price for it. And if you believe the company’s true value is ₩182928.58, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Hyundai Autoever’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.

Check out our latest analysis for Hyundai Autoever

What kind of growth will Hyundai Autoever 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. With profit expected to grow by 36% over the next couple of years, the future seems bright for Hyundai Autoever. 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 A307950’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 track record of its management team. 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 A307950, now may not be the most optimal 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

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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.