Is It Time To Consider Buying Cibus Nordic Real Estate AB (publ) (STO:CIBUS)?

Cibus Nordic Real Estate AB (publ) (STO:CIBUS), is not the largest company out there, but it saw significant share price movement during recent months on the OM, rising to highs of kr162 and falling to the lows of kr106. 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 Cibus Nordic Real Estate's current trading price of kr106 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 Cibus Nordic Real Estate’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 Cibus Nordic Real Estate

Is Cibus Nordic Real Estate Still Cheap?

Cibus Nordic Real Estate appears to be overvalued by 21% at the moment, based on my discounted cash flow valuation. The stock is currently priced at kr106 on the market compared to my intrinsic value of SEK87.83. This means that the buying opportunity has probably disappeared for now. Another thing to keep in mind is that Cibus Nordic Real Estate’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Cibus Nordic Real Estate?

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. Though in the case of Cibus Nordic Real Estate, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? If you believe CIBUS is currently trading above its value, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to de-risk your portfolio. 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 CIBUS for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Our analysis shows 5 warning signs for Cibus Nordic Real Estate (2 are potentially serious!) and we strongly recommend you look at these before investing.

If you are no longer interested in Cibus Nordic Real Estate, 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.