TASCO Berhad (KLSE:TASCO), is not the largest company out there, but it maintained its current share price over the past couple of month on the KLSE, with a relatively tight range of RM0.77 to RM0.82. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at TASCO 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 TASCO Berhad
What Is TASCO Berhad Worth?
According to our valuation model, TASCO Berhad seems to be fairly priced at around 2.88% above our intrinsic value, which means if you buy TASCO Berhad today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth MYR0.75, there’s only an insignificant downside when the price falls to its real value. Furthermore, TASCO Berhad’s low beta implies that the stock is less volatile than the wider market.
Can we expect growth from TASCO Berhad?
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. 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. With profit expected to grow by 25% over the next couple of years, the future seems bright for TASCO Berhad. 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? TASCO’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 financial strength of the company. 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 TASCO, now may not be the most advantageous 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.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of TASCO Berhad.