At kr12.95, Is It Time To Put Komplett ASA (OB:KOMPL) On Your Watch List?

While Komplett ASA (OB:KOMPL) might not have the largest market cap around , it saw a significant share price rise of 23% in the past couple of months on the OB. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Komplett’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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Is Komplett Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 6.3% below our intrinsic value, which means if you buy Komplett today, you’d be paying a fair price for it. And if you believe the company’s true value is NOK13.82, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Komplett’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Check out our latest analysis for Komplett

What does the future of Komplett look like?

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. 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 a double-digit 18% over the next couple of years, the outlook is positive for Komplett. 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? KOMPL’s optimistic future growth appears to have been factored into the current share price, 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 an eye on KOMPL, now may not be the most advantageous 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 Komplett as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Komplett you should be aware of.

If you are no longer interested in Komplett, 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.