Manhattan Bridge Capital Inc (NASDAQ:LOAN), a mortgage reits company based in United States, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $5.75 to $6.1. However, is this the true valuation level of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Manhattan Bridge Capital’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 Manhattan Bridge Capital
Is Manhattan Bridge Capital still cheap?
According to my valuation model, Manhattan Bridge Capital seems to be fairly priced at around 6% above my intrinsic value, which means if you buy Manhattan Bridge Capital today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $5.53, there’s only an insignificant downside when the price falls to its real value. Furthermore, Manhattan Bridge Capital’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
What does the future of Manhattan Bridge Capital look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 24.21% over the next year, the near-term future seems bright for Manhattan Bridge Capital. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Manhattan Bridge Capital’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 the stock? 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 Manhattan Bridge Capital, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into 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 Manhattan Bridge Capital. You can find everything you need to know about Manhattan Bridge Capital in the latest infographic research report. If you are no longer interested in Manhattan Bridge Capital, 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.