Nordic Waterproofing Holding A/S (STO:NWG), which is in the building business, and is based in Sweden, received a lot of attention from a substantial price movement on the OM over the last few months, increasing to SEK85.2 at one point, and dropping to the lows of SEK76. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Nordic Waterproofing Holding's current trading price of SEK76 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 Nordic Waterproofing Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's the opportunity in Nordic Waterproofing Holding?
Great news for investors – Nordic Waterproofing Holding is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is SEK123.13, but it is currently trading at kr76.00 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Nordic Waterproofing Holding’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Nordic Waterproofing Holding generate?
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. 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. With profit expected to grow by 29% over the next couple of years, the future seems bright for Nordic Waterproofing Holding. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since NWG is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NWG for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NWG. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Nordic Waterproofing Holding. You can find everything you need to know about Nordic Waterproofing Holding in the latest infographic research report. If you are no longer interested in Nordic Waterproofing Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.