When Should You Buy Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY)?

While Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the KLSE. 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. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Mr D.I.Y. Group (M) Berhad’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Mr D.I.Y. Group (M) Berhad

Is Mr D.I.Y. Group (M) Berhad Still Cheap?

According to my valuation model, Mr D.I.Y. Group (M) Berhad seems to be fairly priced at around 2.49% above my intrinsic value, which means if you buy Mr D.I.Y. Group (M) Berhad today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth MYR1.51, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Mr D.I.Y. Group (M) Berhad’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Mr D.I.Y. Group (M) Berhad look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Mr D.I.Y. Group (M) Berhad's earnings over the next few years are expected to increase by 38%, 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 MRDIY’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 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 MRDIY, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Mr D.I.Y. Group (M) Berhad from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Mr D.I.Y. Group (M) Berhad, 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.