Is It Time To Consider Buying Beijer Ref AB (publ) (STO:BEIJ B)?

Beijer Ref AB (publ) (STO:BEIJ B), is not the largest company out there, but it saw significant share price movement during recent months on the OM, rising to highs of kr171 and falling to the lows of kr128. 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 Beijer Ref's current trading price of kr140 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 Beijer Ref’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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What Is Beijer Ref Worth?

Beijer Ref appears to be overvalued by 21% at the moment, based on our discounted cash flow valuation. The stock is currently priced at kr140 on the market compared to our intrinsic value of SEK115.66. Not the best news for investors looking to buy! If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that Beijer Ref’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

View our latest analysis for Beijer Ref

What kind of growth will Beijer Ref generate?

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. Beijer Ref's earnings over the next few years are expected to increase by 27%, 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? BEIJ B’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe BEIJ B should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on BEIJ B for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for BEIJ B, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Beijer Ref, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Beijer Ref and we think they deserve your attention.

If you are no longer interested in Beijer Ref, 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.