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Is There Now An Opportunity In D4t4 Solutions Plc (AIM:D4T4)?

D4t4 Solutions Plc (AIM:D4T4), a it services company based in United Kingdom, received a lot of attention from a substantial price movement on the AIM in the over the last few months, increasing to £1.74 at one point, and dropping to the lows of £1.53. 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 D4T4’s current trading price of £1.53 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 D4T4’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 D4t4 Solutions

What is D4T4 worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9% above my intrinsic value, which means if you buy D4T4 today, you’d be paying a relatively reasonable price for it. And if you believe D4T4’s true value is £1.4, there’s only an insignificant downside when the price falls to its real value. In addition to this, it seems like D4T4’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because D4T4’s stock is less volatile than the wider market given its low beta.

What kind of growth will D4T4 generate?

AIM:D4T4 Future Profit Oct 28th 17
AIM:D4T4 Future Profit Oct 28th 17

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. Though in the case of D4T4, it is expected to deliver a relatively unexciting earnings growth of 7.61%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for D4T4, at least in the near term.

What this means for you:

Are you a shareholder? D4T4’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at D4T4? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on D4T4, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for D4T4, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on D4t4 Solutions. You can find everything you need to know about D4T4 in the latest infographic research report. If you are no longer interested in D4t4 Solutions, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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