While Intco Medical Technology Co., Ltd. (SZSE:300677) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the SZSE, rising to highs of CN¥39.58 and falling to the lows of CN¥22.57. 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 Intco Medical Technology's current trading price of CN¥23.50 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Intco Medical Technology'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 Intco Medical Technology

Is Intco Medical Technology still cheap?

Intco Medical Technology appears to be overvalued by 30% at the moment, based on my discounted cash flow valuation. The stock is currently priced at CN¥23.50 on the market compared to my intrinsic value of CN¥18.09. Not the best news for investors looking to buy! Furthermore, Intco Medical Technology'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 Intco Medical Technology generate?

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. In the upcoming year, Intco Medical Technology's earnings are expected to increase by 48%, 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? It seems like the market has well and truly priced in 300677's positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe 300677 should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you've been keeping tabs on 300677 for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for 300677, which means it's worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Intco Medical Technology, you'd also look into what risks it is currently facing. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Intco Medical Technology.

If you are no longer interested in Intco Medical Technology, 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.