Is Now An Opportune Moment To Examine Nordic Waterproofing Holding AB (publ) (STO:NWG)?

Simply Wall St · 09/15/2023 05:23

Nordic Waterproofing Holding AB (publ) (STO:NWG), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the OM 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? Today I will analyse the most recent data on Nordic Waterproofing Holding’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Nordic Waterproofing Holding

What Is Nordic Waterproofing Holding Worth?

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 SEK220.64, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Nordic Waterproofing Holding’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 Nordic Waterproofing Holding look like?

OM:NWG Earnings and Revenue Growth September 15th 2023

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. Nordic Waterproofing Holding's earnings over the next few years are expected to increase by 38%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since NWG is currently undervalued, it may be a great time to accumulate more of 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 capital structure 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. You'd be interested to know, that we found 3 warning signs for Nordic Waterproofing Holding and you'll want to know about these.

If you are no longer interested in Nordic Waterproofing Holding, you can use our free platform to see our list of over 50 other stocks with a high growth potential.