Is it too late to consider buying Ansarada Group Limited (ASX:AND)?

Ansarada Group Limited (ASX:AND) isn’t the biggest company in the market, but it has received a lot of attention due to significant price movement on the ASX over the past few months, increasing up to AU$2.46 at one point, and dropping to a minimum of AU$2.10. 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 Ansarada Group’s current share price of AU$2.29 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 Ansarada 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 Ansarada Group

Is Ansarada Group still cheap?

According to our valuation model, Ansarada Group appears to be reasonably priced, around 6.21% above our intrinsic value, which means if you buy Ansarada Group today, you’ll be paying a relatively fair price. And if you think the stock is actually worth AU$2.16, there will only be an insignificant decline when the price drops to its true value. Is there another opportunity to buy low in the future? Since Ansarada Group’s share price is quite volatile, we could potentially see it fall (or rise) in the future, giving us another chance to buy. 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.

What type of growth will the Ansarada Group generate?

Future outlook is an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. 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 revenues expected to grow by 34% over the next two years, the future looks bright for the Ansarada Group. If the level of spending can be maintained, it appears that higher cash flow is on the cards for the stock, which should translate into a higher stock valuation.

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What this means for you

Are you a shareholder? It appears the market has already priced in AND’s positive outlook, with shares trading around fair value. However, there are also other important factors that we haven’t considered today, such as the background of its management team. Have these factors changed since you last looked at the stock? Will you have enough confidence to invest in the company if the price falls below its fair value?

Are you a potential investor? If you’re monitoring AND, now may not be the most optimal time to buy, given that it’s trading around fair value. However, the positive outlook is encouraging for the company, meaning it is worth digging deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is so important when it comes to individual stock picking, it’s worth taking a look at the latest analyst forecasts. At Simply Wall St, we have analyst estimates which you can view by clicking here.

If you are no longer interested in Ansarada Group, you can use our free platform to consult 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 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.