What Is PowerCell Sweden AB (publ)'s (STO:PCELL) Share Price Doing?

While PowerCell Sweden AB (publ) (STO:PCELL) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the OM over the last few months. While good news for shareholders, the company has traded much higher in the past year. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine PowerCell Sweden’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for PowerCell Sweden

Is PowerCell Sweden Still Cheap?

Great news for investors – PowerCell Sweden is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is SEK58.05, but it is currently trading at kr35.24 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, PowerCell Sweden’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will PowerCell Sweden generate?

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. With profit expected to grow by 90% over the next couple of years, the future seems bright for PowerCell Sweden. 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? Since PCELL is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on PCELL for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PCELL. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you'd like to know more about PowerCell Sweden as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that PowerCell Sweden has 2 warning signs and it would be unwise to ignore these.

If you are no longer interested in PowerCell Sweden, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.