While iEnergizer Limited (LON:IBPO) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the AIM, rising to highs of UK£3.14 and falling to the lows of UK£2.58. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether iEnergizer's current trading price of UK£2.61 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 iEnergizer's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for iEnergizer
Is iEnergizer still cheap?
Great news for investors - iEnergizer is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is £3.83, but it is currently trading at UK£2.61 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, iEnergizer'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 iEnergizer look like?
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. With revenues expected to grow by a double-digit 22% over the next couple of years, the outlook is positive for iEnergizer. If the level of expenses is able to be maintained, it looks like higher cash flow 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 IBPO is currently undervalued, it may be a great time to increase 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 IBPO 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 IBPO. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
If you'd like to know more about iEnergizer as a business, it's important to be aware of any risks it's facing. For example - iEnergizer has 2 warning signs we think you should be aware of.
If you are no longer interested in iEnergizer, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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