Is It Too Late To Consider Buying Coupang, Inc. (NYSE:CPNG)?

Coupang, Inc. (NYSE:CPNG) saw a significant share price rise of 32% in the past couple of months on the NYSE. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Coupang’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Coupang

What's The Opportunity In Coupang?

Great news for investors – Coupang is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $28.50, but it is currently trading at US$18.24 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Coupang’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 kind of growth will Coupang generate?

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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Coupang, at least in the near future.

What This Means For You

Are you a shareholder? Although CPNG is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to CPNG, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on CPNG for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into Coupang, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Coupang and we think they deserve your attention.

If you are no longer interested in Coupang, 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.