Is Airtac International Group (TWSE:1590) Potentially Undervalued?

While Airtac International Group (TWSE:1590) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the TWSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on Airtac International Group’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Airtac International Group

What Is Airtac International Group Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 1.11% above our intrinsic value, which means if you buy Airtac International Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is NT$866.34, there’s only an insignificant downside when the price falls to its real value. Furthermore, Airtac International Group’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Airtac International Group generate?

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. Airtac International Group's earnings over the next few years are expected to increase by 42%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? 1590’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on 1590, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which 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. In terms of investment risks, we've identified 1 warning sign with Airtac International Group, and understanding it should be part of your investment process.

If you are no longer interested in Airtac International Group, 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.