Shenzhen Aisidi Co., Ltd. (SZSE:002416), is not the largest company out there, but it saw significant share price movement during recent months on the SZSE, rising to highs of CN¥12.26 and falling to the lows of CN¥8.61. 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 Shenzhen Aisidi's current trading price of CN¥8.61 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 Shenzhen Aisidi's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is Shenzhen Aisidi Still Cheap?

Great news for investors – Shenzhen Aisidi is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. we find that Shenzhen Aisidi's ratio of 16.45x is below its peer average of 39.35x, which indicates the stock is trading at a lower price compared to the Electronic industry. However, given that Shenzhen Aisidi's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Shenzhen Aisidi?

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. With profit expected to grow by 32% over the next couple of years, the future seems bright for Shenzhen Aisidi. 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? Since 002416 is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit 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 financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you've been keeping an eye on 002416 for a while, now might be the time to enter the stock. Its buoyant future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy 002416. 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'd like to know more about Shenzhen Aisidi as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Shenzhen Aisidi you should know about.

If you are no longer interested in Shenzhen Aisidi, 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.

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