Stock Analysis

Is FastPartner AB (publ) (STO:FPAR A) Potentially Undervalued?

OM:FPAR A
Source: Shutterstock

FastPartner AB (publ) (STO:FPAR A), is not the largest company out there, but it received a lot of attention from a substantial price movement on the OM over the last few months, increasing to kr80.00 at one point, and dropping to the lows of kr67.00. 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 FastPartner's current trading price of kr72.90 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 FastPartner’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 FastPartner

What's The Opportunity In FastPartner?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 19% below our intrinsic value, which means if you buy FastPartner today, you’d be paying a reasonable price for it. And if you believe the company’s true value is SEK89.99, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because FastPartner’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from FastPartner?

earnings-and-revenue-growth
OM:FPAR A Earnings and Revenue Growth September 4th 2024

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted revenue growth of 8.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for FastPartner, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in FPAR A’s future 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 FPAR A, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. You'd be interested to know, that we found 1 warning sign for FastPartner and you'll want to know about this.

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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.