Yahoo Finance Should You Think About Buying Firan Technology Group Corporation (TSE:FTG) Now?
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Firan Technology Group Corporation (TSE:FTG), which is in the electronic business, and is based in Canada, received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$3.49 at one point, and dropping to the lows of CA$3.1. 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 Firan Technology Group's current trading price of CA$3.3 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 Firan Technology Group’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 Firan Technology Group
What is Firan Technology Group worth?
The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 17.09x is currently trading in-line with its industry peers’ ratio, which means if you buy Firan Technology Group today, you’d be paying a relatively reasonable price for it. Furthermore, it seems like Firan Technology Group’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Firan Technology Group 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. 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. With profit expected to grow by 59% over the next year, the near-term future seems bright for Firan Technology Group. 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? FTG’s optimistic 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 financial strength of the company. Have these factors changed since the last time you looked at FTG? Will you have enough conviction to buy should the price fluctuate below the true value?
Are you a potential investor? If you’ve been keeping tabs on FTG, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for FTG, which 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Firan Technology Group. You can find everything you need to know about Firan Technology Group in the latest infographic research report. If you are no longer interested in Firan Technology Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
