Hefei Meyer Optoelectronic Technology Inc. (SZSE:002690), might not be a large cap stock, but it saw a significant share price rise of 24% in the past couple of months on the SZSE. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Hefei Meyer Optoelectronic Technology's outlook and valuation to see if the opportunity still exists.

Is Hefei Meyer Optoelectronic Technology Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 9.1% below our intrinsic value, which means if you buy Hefei Meyer Optoelectronic Technology today, you'd be paying a fair price for it. And if you believe the company's true value is CN¥16.75, then there's not much of an upside to gain from mispricing. In addition to this, Hefei Meyer Optoelectronic Technology has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Hefei Meyer Optoelectronic Technology look like?

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. Hefei Meyer Optoelectronic Technology's earnings over the next few years are expected to increase by 36%, 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 already priced in 002690's positive outlook, 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you've been keeping an eye on 002690, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, 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.

If you want to dive deeper into Hefei Meyer Optoelectronic Technology, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Hefei Meyer Optoelectronic Technology you should know about.

If you are no longer interested in Hefei Meyer Optoelectronic 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.