At ₩19,990, Is It Time To Put FURONTEER Inc. (KOSDAQ:370090) On Your Watch List?

While FURONTEER Inc. (KOSDAQ:370090) might not have the largest market cap around , it saw a significant share price rise of 51% in the past couple of months on the KOSDAQ. While good news for shareholders, the company has traded much higher in the past year. 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 FURONTEER’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for FURONTEER

What's The Opportunity In FURONTEER?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 18% below our intrinsic value, which means if you buy FURONTEER today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ₩24242.45, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since FURONTEER’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 FURONTEER 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 revenues expected to grow by 46% over the next couple of years, the future seems bright for FURONTEER. If the level of expenses is able to be maintained, 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 A370090’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 A370090, 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.

If you want to dive deeper into FURONTEER, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for FURONTEER and you'll want to know about these.

If you are no longer interested in FURONTEER, 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.