Is It Too Late To Buy Bitauto Holdings Limited (NYSE:BITA)?
Bitauto Holdings Limited (NYSE:BITA), a internet company based in China, led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Bitauto Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists. View out our latest analysis for Bitauto Holdings
Is Bitauto Holdings still cheap?
Great news for investors – Bitauto Holdings is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $31.49, but it is currently trading at US$24.78 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Bitauto Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Bitauto Holdings look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 81.41% over the next year, the near-term future seems bright for Bitauto Holdings. 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? Since BITA is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on BITA for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BITA. 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 Bitauto Holdings. You can find everything you need to know about Bitauto Holdings in the latest infographic research report. If you are no longer interested in Bitauto Holdings, 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.
