At NT$935, Is It Time To Put Jinan Acetate Chemical Co., Ltd. (TWSE:4763) On Your Watch List?

While Jinan Acetate Chemical Co., Ltd. (TWSE:4763) might not have the largest market cap around , it saw a decent share price growth of 17% on the TWSE over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. As a NT$92b market cap stock, it seems odd Jinan Acetate Chemical is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today we will analyse the most recent data on Jinan Acetate Chemical’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Jinan Acetate Chemical

Is Jinan Acetate Chemical Still Cheap?

Great news for investors – Jinan Acetate Chemical is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Jinan Acetate Chemical’s ratio of 12.16x is below its peer average of 21.41x, which indicates the stock is trading at a lower price compared to the Chemicals industry. What’s more interesting is that, Jinan Acetate Chemical’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Jinan Acetate Chemical 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. 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. Jinan Acetate Chemical's revenue growth are expected to be in the teens in the upcoming year, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 4763 is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on 4763 for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 4763. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment.

If you want to dive deeper into Jinan Acetate Chemical, you'd also look into what risks it is currently facing. For example, we've found that Jinan Acetate Chemical has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Jinan Acetate Chemical, 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.