CT Environmental Group Limited (SEHK:1363), a water utilities company based in China, saw significant share price volatility over the past couple of months on the SEHK, rising to the highs of HK$1.6 and falling to the lows of HK$1.19. 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 CT Environmental Group’s current trading price of HK$1.2 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 CT Environmental Group’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 CT Environmental Group
What is CT Environmental Group worth?
Good news, investors! CT Environmental Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is HK$2.12, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, CT Environmental Group’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 CT Environmental Group 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. CT Environmental Group’s earnings over the next few years are expected to increase by 70.56%, 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 1363 is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on 1363 for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 1363. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.