Cypark Resources Berhad (KLSE:CYPARK), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM0.96 at one point, and dropping to the lows of RM0.81. 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 Cypark Resources Berhad's current trading price of RM0.81 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 Cypark Resources Berhad’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 Cypark Resources Berhad
Is Cypark Resources Berhad Still Cheap?
Cypark Resources Berhad appears to be overvalued by 22% at the moment, based on our discounted cash flow valuation. The stock is currently priced at RM0.81 on the market compared to our intrinsic value of MYR0.67. This means that the opportunity to buy Cypark Resources Berhad at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Cypark Resources Berhad’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 Cypark Resources Berhad 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. In the upcoming year, Cypark Resources Berhad's earnings are expected to increase by 87%, 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? It seems like the market has well and truly priced in CYPARK’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CYPARK should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.