While Sharetronic Data Technology Co., Ltd. (SZSE:300857) might not have the largest market cap around , it saw a significant share price rise of 95% in the past couple of months on the SZSE. While good news for shareholders, the company has traded much higher in the past year. As a CN¥21b market-cap stock, it seems odd Sharetronic Data Technology is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let's examine Sharetronic Data Technology's valuation and outlook in more detail to determine if there's still a bargain opportunity.

What's The Opportunity In Sharetronic Data Technology?

Good news, investors! Sharetronic Data Technology is still a bargain right now according to our price multiple model, which compares 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 Sharetronic Data Technology's ratio of 33x is below its peer average of 56.28x, which indicates the stock is trading at a lower price compared to the Tech industry. However, given that Sharetronic Data Technology'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.

What does the future of Sharetronic Data 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. Sharetronic Data Technology's earnings over the next few years are expected to increase by 65%, 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? Since 300857 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 300857 for a while, now might be the time to make a leap. Its prosperous future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy 300857. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you'd like to know more about Sharetronic Data Technology as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 2 warning signs for Sharetronic Data Technology and you'll want to know about these.

If you are no longer interested in Sharetronic Data 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.