At US$3.08, Is Jerash Holdings (US), Inc. (NASDAQ:JRSH) Worth Looking At Closely?

Jerash Holdings (US), Inc. (NASDAQ:JRSH), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$3.81 at one point, and dropping to the lows of US$3.08. 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 Jerash Holdings (US)'s current trading price of US$3.08 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 Jerash Holdings (US)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is Jerash Holdings (US) Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.25% above our intrinsic value, which means if you buy Jerash Holdings (US) today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $2.82, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Jerash Holdings (US)’s share price may be more stable over time (relative to the market), as indicated by its low beta.

View our latest analysis for Jerash Holdings (US)

Can we expect growth from Jerash Holdings (US)?

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. In Jerash Holdings (US)'s case, its revenues over the next few years are expected to grow by 39%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in JRSH’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 tabs on JRSH, now may not be the most optimal 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Our analysis shows 2 warning signs for Jerash Holdings (US) (1 is significant!) and we strongly recommend you look at these before investing.

If you are no longer interested in Jerash Holdings (US), 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.