Should You Investigate Beijer Ref AB (publ) (STO:BEIJ B) At kr148?

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 kr181 and falling to the lows of kr135. 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 kr148 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.

See our latest analysis for Beijer Ref

What is Beijer Ref worth?

According to my valuation model, the stock is currently overvalued by about 39%, trading at kr148 compared to my intrinsic value of SEK106.10. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Beijer Ref’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Beijer Ref 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. Beijer Ref's earnings over the next few years are expected to increase by 51%, 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 well and truly priced in BEIJ B’s positive outlook, 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 an eye on BEIJ B for a while, 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. While conducting our analysis, we found that Beijer Ref has 2 warning signs and it would be unwise to ignore these.

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.