Should You Investigate Vend Marketplaces ASA (OB:VEND) At kr281?

Vend Marketplaces ASA (OB:VEND), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the OB over the last few months, increasing to kr375 at one point, and dropping to the lows of kr280. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Vend Marketplaces' current trading price of kr281 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Vend Marketplaces’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is Vend Marketplaces Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 13.44% above our intrinsic value, which means if you buy Vend Marketplaces today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is NOK247.70, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Vend Marketplaces has a low beta, which suggests its share price is less volatile than the wider market.

View our latest analysis for Vend Marketplaces

What does the future of Vend Marketplaces 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. Vend Marketplaces' earnings over the next few years are expected to increase by 23%, 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 VEND’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 VEND, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Vend Marketplaces as a business, it's important to be aware of any risks it's facing. For example, we've found that Vend Marketplaces has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Vend Marketplaces, 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.