Is it too late to consider buying AWC Berhad (KLSE:AWC)?

AWC Berhad (KLSE:AWC), may not be a large-cap stock, but it has received a lot of attention due to substantial price movement on the KLSE over the past few months, rising to 0 .58 at one point and dropping to the lowest of RM0.49. Certain stock price movements can give investors a better opportunity to enter the stock and potentially buy at a lower price. A question that needs to be answered is whether AWC Berhad’s current price of RM0.51 reflects the true value of the small cap? Or is it currently undervalued, giving us an opportunity to buy? Let’s take a look at AWC Berhad’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 AWC Berhad

What is AWC Berhad worth?

Good news, investors! AWC Berhad is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average. In this case, I used the price-to-earnings (PE) ratio, since there is not enough information to reliably forecast the stock’s cash flows. I find AWC Berhad’s ratio of 8.15x to be lower than its peer average of 16.56x, indicating that the stock is trading at a lower price than the Construction sector. What’s more interesting is that AWC Berhad’s stock price is quite volatile, which gives us more chances to buy since the stock price could go down (or up) over time. future. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.

Can we expect growth from AWC Berhad?

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Although value investors argue that it’s the intrinsic value relative to the price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With double-digit profit growth expected at 17% over the coming year, the near-term outlook is positive for AWC Berhad. It looks like higher cash flow is on the cards for the stock, which should translate into a higher share valuation.

What this means for you

Are you a shareholder? Given that AWC is currently trading below the industry PE ratio, now may be a great time to accumulate more of your stock holdings. With an optimistic earnings outlook on the horizon, it appears this growth has yet to be fully factored into the stock price. However, other factors should also be considered, such as capital structure, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on AWC for a while, now might be the time to take the plunge. Its optimistic future earnings outlook is not yet fully reflected in the current stock price, meaning it’s not too late to buy AWC. But before making an investment decision, consider other factors such as the track record of its management team, in order to make an informed investment decision.

If you want to learn more about AWC Berhad, you will also look at the risks it currently faces. You would be interested to know that we found 2 warning signs for AWC Berhad and you will want to know them.

If you are no longer interested in AWC Berhad, you can use our free platform to view our list of over 50 other stocks with high growth potential.

Any feedback on this article? Worried about the content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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