Is Now The Time To Look At Buying FastPartner AB (publ) (STO:FPAR A)?

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 kr85.00 at one point, and dropping to the lows of kr65.00. 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 kr65.80 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.

See 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 20% 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 SEK82.24, 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?

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 FastPartner, it is expected to deliver a relatively unexciting top-line growth of 3.0% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near 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 advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 want to dive deeper into FastPartner, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with FastPartner, and understanding it should be part of your investment process.

If you are no longer interested in FastPartner, 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.