At RM17.44, Is It Time To Put Malaysian Pacific Industries Berhad (KLSE:MPI) On Your Watch List?

Malaysian Pacific Industries Berhad (KLSE:MPI), might not be a large cap stock, but it led the KLSE gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Malaysian Pacific Industries Berhad’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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What Is Malaysian Pacific Industries Berhad Worth?

Good news, investors! Malaysian Pacific Industries Berhad is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is MYR28.37, but it is currently trading at RM17.44 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Malaysian Pacific Industries Berhad’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

See our latest analysis for Malaysian Pacific Industries Berhad

What kind of growth will Malaysian Pacific Industries Berhad 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. Malaysian Pacific Industries Berhad's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since MPI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MPI for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MPI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

It can be quite valuable to consider what analysts expect for Malaysian Pacific Industries Berhad from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Malaysian Pacific Industries 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.