What Does PION Group AB (publ)'s (STO:PION B) Share Price Indicate?

While PION Group AB (publ) (STO:PION B) might not have the largest market cap around , it saw a decent share price growth of 14% on the OM over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a small cap stock, hardly covered by any analysts, 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? Today we will analyse the most recent data on PION Group’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for PION Group

What Is PION Group Worth?

Great news for investors – PION Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is SEK10.56, but it is currently trading at kr7.04 on the share market, meaning that there is still an opportunity to buy now. However, given that PION Group’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.

Can we expect growth from PION Group?

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. However, with a relatively muted revenue growth of 5.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for PION Group, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since PION B is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on PION B for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PION B. 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 investment decision.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 2 warning signs for PION Group and we think they deserve your attention.

If you are no longer interested in PION Group, 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.