At US$0.91, Is It Time To Put Beasley Broadcast Group, Inc. (NASDAQ:BBGI) On Your Watch List?

Beasley Broadcast Group, Inc. (NASDAQ:BBGI), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to US$1.15 at one point, and dropping to the lows of US$0.91. 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 Beasley Broadcast Group's current trading price of US$0.91 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 Beasley Broadcast Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Beasley Broadcast Group

Is Beasley Broadcast Group Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 2.61% above my intrinsic value, which means if you buy Beasley Broadcast Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $0.89, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Beasley Broadcast Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 Beasley Broadcast Group look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 a double-digit 12% in the upcoming year, the short-term outlook is positive for Beasley Broadcast Group. 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? BBGI’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 track record of its management team. 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 BBGI, 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.

So while earnings quality is important, it's equally important to consider the risks facing Beasley Broadcast Group at this point in time. To that end, you should learn about the 2 warning signs we've spotted with Beasley Broadcast Group (including 1 which is concerning).

If you are no longer interested in Beasley Broadcast 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.