Boryszew SA. (WSE:BRS), a metals and mining company based in Poland, received a lot of attention from a substantial price movement on the WSE in the over the last few months, increasing to PLN9.87 at one point, and dropping to the lows of PLN8.86. 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 Boryszew’s current trading price of PLN9.32 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 Boryszew’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Boryszew
What is Boryszew worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 18.55% below my intrinsic value, which means if you buy Boryszew today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth PLN11.44, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, it seems like Boryszew’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 the stock is less volatile than the wider market given its low beta.
What does the future of Boryszew 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. However, with a relatively muted profit growth of 0.64% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Boryszew, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in BRS’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 an eye on BRS, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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 Boryszew. You can find everything you need to know about Boryszew in the latest infographic research report. If you are no longer interested in Boryszew, 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.