Global Cord Blood Corporation (NYSE:CO), a healthcare company based in Hong Kong, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $11.87 at one point, and dropping to the lows of $9.07. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Global Cord Blood’s current trading price of $9.76 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 Global Cord Blood’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Global Cord Blood
What is Global Cord Blood worth?Great news for investors – Global Cord Blood is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $15.41, but it is currently trading at US$9.76 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Global Cord Blood’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Global Cord Blood look like?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Global Cord Blood’s earnings over the next few years are expected to increase by 81.92%, 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? Since CO is currently undervalued, 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 undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CO for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CO. 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 buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Global Cord Blood. You can find everything you need to know about Global Cord Blood in the latest infographic research report. If you are no longer interested in Global Cord Blood, you can use our free platform to see my list of over 50 other stocks with a high growth potential.