Is There Now An Opportunity In ScandiDos AB (publ) (STO:SDOS)?

ScandiDos AB (publ) (STO:SDOS), is not the largest company out there, but it saw significant share price movement during recent months on the OM, rising to highs of kr2.80 and falling to the lows of kr2.12. 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 ScandiDos' current trading price of kr2.26 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 ScandiDos’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 ScandiDos

What's The Opportunity In ScandiDos?

Good news, investors! ScandiDos is still a bargain right now. According to my valuation, the intrinsic value for the stock is SEK3.05, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that ScandiDos’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.

What kind of growth will ScandiDos generate?

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. ScandiDos' revenue growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since SDOS 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 SDOS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SDOS. 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 want to dive deeper into ScandiDos, you'd also look into what risks it is currently facing. To that end, you should learn about the 4 warning signs we've spotted with ScandiDos (including 1 which doesn't sit too well with us).

If you are no longer interested in ScandiDos, 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.