Paragon Care, Undervalued!!!
Should You Buy Paragon Care Limited (ASX
GC)?
Lacy Summers September 19, 2017
Paragon Care Limited (ASX
GC), a healthcare equipment and services company based in Australia, led the ASX gainers with a relatively large price hike in the past couple of weeks. Less covered, small-stocks like PGC sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could PGC still be trading at a low price relative to its actual value? Let’s examine PGC’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Paragon Care
Is PGC still cheap?
Great news for investors – PGC is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $1.36 which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. PGC’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will PGC generate?
ASX
GC Future Profit Sep 19th 17 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 PGC future expectations. With profit expected to grow by 38.24% over the next couple of years, the future seems bright for PGC. 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? Since PGC 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 PGC 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 PGC. 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 investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Paragon Care. You can find everything you need to know about PGC in the latest infographic research report. If you are no longer interested in Paragon Care, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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