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Is It Too Late To Buy CSE Global Limited (SGX:544)?

CSE Global Limited (SGX:544), a it company based in Singapore, saw a decent share price growth in the teens level on the SGX over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at CSE Global’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for CSE Global

What’s the opportunity in CSE Global?

According to my valuation model, CSE Global seems to be fairly priced at around 19% above my intrinsic value, which means if you buy CSE Global today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is SGD0.34, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, it seems like CSE Global’s share price is quite stable, which means 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 kind of growth will CSE Global generate?

SGX:544 Future Profit Mar 20th 18
SGX:544 Future Profit Mar 20th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. CSE Global’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? 544’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 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 544, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 CSE Global. You can find everything you need to know about CSE Global in the latest infographic research report. If you are no longer interested in CSE Global, 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.

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