Is it time to consider buying Taptica International Ltd (LON:TAP)?

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Taptica International Ltd (LON:TAP), which operates in the media sector and is based in Israel, has seen its share price increase by more than 20% in the last two months on the AIM. As a small-cap stock, with virtually no analyst coverage, there is generally more opportunity for mispricing because there is less activity to bring the stock closer to fair value. Is there still a buying opportunity here? Let’s take a look at Taptica International’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Taptica International

What is Taptica International worth?

Good news, investors! Taptica International is still a good deal right now. 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 Taptica International’s ratio of 10.19x to be lower than its peer average of 20.8x, suggesting the stock is undervalued relative to the Media sector. However, there might be another chance to purchase again in the future. This is because Taptica International’s beta (a measure of stock price volatility) is high, meaning that price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s stock will likely fall more than the rest of the market, providing a great buying opportunity.

What type of growth will Taptica International 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 Taptica International. 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 TAP is currently undervalued, now may be a great time to increase your stock holdings. With an optimistic 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 undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TAP for a while, now might be a good time to get into the stock. Its prosperous future prospects are not yet fully reflected in the current stock price, meaning it’s not too late to buy TAP. But before making an investment decision, consider other factors such as the track record of its management team, in order to make an informed purchase.

The price is just the tip of the iceberg. Dig deeper into what really matters – the fundamentals – before making a decision about Taptica International. You can find everything you need to know about Taptica International in the latest infographic research report. If you are no longer interested in Taptica International, you can use our free platform to view my list of over 50 other stocks with high growth potential.

Our goal is to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material.

If you spot an error that merits correction, please contact the editor at [email protected]. This Simply Wall St article is general in nature. This makes not constitutes a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Simply Wall St has no position in any stocks mentioned. On rare occasions, data errors may occur. Thanks for the reading.