Is it time to consider buying Jiugui Liquor Co., Ltd.? (SZSE: 000799)?

Although Jiugui Liquor Co., Ltd. (SZSE: 000799) may not have the largest market capitalization at the moment, it has received a lot of attention due to significant price movement on the SZSE over the past few months, increasing to 62.70 CN¥ at some point. , and falling to the low of CN¥45.93. Certain stock price movements can give investors a better opportunity to enter the stock and potentially buy at a lower price. One question that needs to be answered is whether Jiugui Liquor’s current price of CN¥46.56 reflects the true value of the mid-cap company? Or is it currently undervalued, giving us an opportunity to buy? Let’s take a look at Jiugui Liquor’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 Jiugui Liquor

What is Jiugui alcohol worth?

Great news for investors: Jiugui Liquor is still trading at a pretty cheap price. Our valuation model shows that the stock’s intrinsic value is CN¥65.48, but it is currently trading at CN¥46.56 in the stock market, meaning there is still an opportunity purchase now. However, given that Jiugui Liquor stock is quite volatile (meaning its price movements are amplified relative to the rest of the market), this could mean that the price may fall, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.

What kind of growth will Jiugui Liquor generate?

Investors looking for growth in their portfolio may want to consider a company’s prospects before buying its shares. Buying a great company with a strong outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profits expected to more than double over the next two years, the future looks bright for Jiugui Liquor. 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? Since 000799 is currently undervalued, now might be a great time to increase your stock holdings. With an optimistic outlook on the horizon, it appears that 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 undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 000799 for a while, now might be the time to take the plunge. Its optimistic future outlook is not yet fully reflected in the current stock price, which means it’s not too late to buy 000799. But before you make an investment decision, consider other factors such as the track record of its management team, in order to make an informed purchase.

Keep in mind that when it comes to analyzing a stock, it is worth noting the risks involved. Concrete example: we spotted 3 Warning Signs for Jiugui Liquor you need to be aware of them and 2 of them should not be ignored.

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

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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 is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative elements. Simply Wall St has no position in any of the stocks mentioned.

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