Is Now An Opportune Moment To Examine Clavister Holding AB (publ.) (STO:CLAV)?

Clavister Holding AB (publ.) (STO:CLAV), might not be a large cap stock, but it saw a decent share price growth in the teens level on the OM over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Clavister Holding AB (publ.)’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Clavister Holding AB (publ.)

Is Clavister Holding AB (publ.) still cheap?

According to my valuation model, Clavister Holding AB (publ.) seems to be fairly priced at around 9.01% above my intrinsic value, which means if you buy Clavister Holding AB (publ.) today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth SEK6.88, there’s only an insignificant downside when the price falls to its real value. What's more, Clavister Holding AB (publ.)’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Clavister Holding AB (publ.)?

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. With revenues expected to grow by 78% over the next couple of years, the future seems bright for Clavister Holding AB (publ.). If the level of expenses is able to be maintained, 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? CLAV’s optimistic future growth appears to have been factored into the current share price, 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 an eye on CLAV, 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 want to dive deeper into Clavister Holding AB (publ.), you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 3 warning signs for Clavister Holding AB (publ.) (of which 2 shouldn't be ignored!) you should know about.

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This article by Simply Wall St is general in nature. 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.
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