Let's talk about the popular Henderson Land Development Company Limited (HKG:12). The company's shares saw significant share price movement during recent months on the SEHK, rising to highs of HK$34.10 and falling to the lows of HK$30.15. 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 Henderson Land Development's current trading price of HK$30.15 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Henderson Land Development's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Henderson Land Development

What is Henderson Land Development worth?

According to my valuation model, Henderson Land Development seems to be fairly priced at around 10.04% above my intrinsic value, which means if you buy Henderson Land Development today, you'd be paying a relatively reasonable price for it. And if you believe that the stock is really worth HK$27.40, then there isn't really any room for the share price grow beyond what it's currently trading. In addition to this, Henderson Land Development has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Henderson Land Development?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted profit growth of 8.0% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Henderson Land Development, at least in the short term.

What this means for you:

Are you a shareholder? 12's 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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping tabs on 12, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Henderson Land Development.

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

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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.