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Is It Too Late To Buy Clavister Holding AB (publ) (STO:CLAV)?

Brandy Kinsey

Clavister Holding AB (publ) (STO:CLAV), a software company based in Sweden, received a lot of attention from a substantial price movement on the OM over the last few months, increasing to SEK20 at one point, and dropping to the lows of SEK14.7. 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 Clavister Holding AB (publ.)’s current trading price of SEK14.7 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 Clavister Holding AB (publ.)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Clavister Holding AB (publ.)

What is Clavister Holding AB (publ.) worth?

Clavister Holding AB (publ.) appears to be overvalued by 29.99% at the moment, based on my discounted cash flow valuation. The stock is currently priced at kr14.70 on the market compared to my intrinsic value of SEK11.31. This means that the buying opportunity has probably disappeared for now. In addition to this, it seems like Clavister Holding AB (publ.)’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Clavister Holding AB (publ.) look like?

OM:CLAV Future Profit June 27th 18

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 78.42% over the next couple of years, the future seems bright for Clavister Holding AB (publ.). 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? It seems like the market has well and truly priced in CLAV’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe CLAV should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on CLAV for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for CLAV, which means it’s worth diving deeper into other factors 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 Clavister Holding AB (publ.). You can find everything you need to know about Clavister Holding AB (publ.) in the latest infographic research report. If you are no longer interested in Clavister Holding AB (publ.), 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.