Should You Investigate Kambi Group plc (STO:KAMBI) At kr101?

While Kambi Group plc (STO:KAMBI) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the OM over the last few months, increasing to kr175 at one point, and dropping to the lows of kr101. 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 Kambi Group's current trading price of kr101 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Kambi Group’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 Kambi Group

What's The Opportunity In Kambi Group?

According to our valuation model, Kambi Group seems to be fairly priced at around 8.6% below our intrinsic value, which means if you buy Kambi Group today, you’d be paying a fair price for it. And if you believe the company’s true value is SEK110.21, then there’s not much of an upside to gain from mispricing. In addition to this, Kambi Group has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Kambi Group?

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 24% over the next couple of years, the future seems bright for Kambi Group. 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? It seems like the market has already priced in KAMBI’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on KAMBI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which 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 Kambi Group as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kambi Group.

If you are no longer interested in Kambi 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.