Genting Malaysia Berhad (KLSE:GENM), is not the largest company out there, but it saw a decent share price growth in the teens level on the KLSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Genting Malaysia Berhad’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Genting Malaysia Berhad

What's The Opportunity In Genting Malaysia Berhad?

Great news for investors – Genting Malaysia Berhad is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is MYR3.63, but it is currently trading at RM2.68 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Genting Malaysia Berhad’s share price is theoretically 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.

What does the future of Genting Malaysia Berhad look like?

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. Genting Malaysia Berhad's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since GENM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 GENM for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GENM. 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 investment decision.

If you want to dive deeper into Genting Malaysia Berhad, you'd also look into what risks it is currently facing. When we did our research, we found 2 warning signs for Genting Malaysia Berhad (1 is significant!) that we believe deserve your full attention.

If you are no longer interested in Genting Malaysia Berhad, 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.