Yahoo Finance Is It Time To Buy GuocoLand Limited (SGX:F17)?
GuocoLand Limited (SGX:F17), a real estate company based in Singapore, saw its share price hover around a small range of SGD2.04 to SGD2.22 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at GuocoLand’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for GuocoLand
Is GuocoLand still cheap?
Good news, investors! GuocoLand is still a bargain right now. My valuation model shows that the intrinsic value for the stock is SGD7.93, but it is currently trading at S$2.04 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, GuocoLand’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, 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.
Can we expect growth from GuocoLand?
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. Though in the case of GuocoLand, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? Although F17 is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to F17, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on F17 for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on GuocoLand. You can find everything you need to know about GuocoLand in the latest infographic research report. If you are no longer interested in GuocoLand, 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.
