When Should You Buy Feng Tay Enterprises Co., Ltd. (TWSE:9910)?

Feng Tay Enterprises Co., Ltd. (TWSE:9910), might not be a large cap stock, but it saw significant share price movement during recent months on the TWSE, rising to highs of NT$166 and falling to the lows of NT$132. 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 Feng Tay Enterprises' current trading price of NT$136 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Feng Tay Enterprises’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 Feng Tay Enterprises

What's The Opportunity In Feng Tay Enterprises?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 3.1% below our intrinsic value, which means if you buy Feng Tay Enterprises today, you’d be paying a fair price for it. And if you believe the company’s true value is NT$140.39, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Feng Tay Enterprises’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Feng Tay Enterprises look like?

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. 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. With profit expected to grow by 38% over the next couple of years, the future seems bright for Feng Tay Enterprises. 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? It seems like the market has already priced in 9910’s positive 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 an eye on 9910, now may not be the most optimal 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - Feng Tay Enterprises has 1 warning sign we think you should be aware of.

If you are no longer interested in Feng Tay Enterprises, 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.