At kr207, Is Lifco AB (publ) (STO:LIFCO B) Worth Looking At Closely?

Lifco AB (publ) (STO:LIFCO B), is not the largest company out there, but it received a lot of attention from a substantial price movement on the OM over the last few months, increasing to kr241 at one point, and dropping to the lows of kr201. 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 Lifco's current trading price of kr207 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 Lifco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Lifco

What's The Opportunity In Lifco?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.86% above my intrinsic value, which means if you buy Lifco today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth SEK181.98, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Lifco’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.

What does the future of Lifco look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted profit growth of 8.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Lifco, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in LIFCO B’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 LIFCO B, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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 Lifco as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Lifco and we think they deserve your attention.

If you are no longer interested in Lifco, 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.