While Yue Yuen Industrial (Holdings) Limited (HKG:551) might not have the largest market cap around , it saw a decent share price growth of 13% on the SEHK over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's examine Yue Yuen Industrial (Holdings)'s valuation and outlook in more detail to determine if there's still a bargain opportunity.

What Is Yue Yuen Industrial (Holdings) Worth?

According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We'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 7.34x is currently trading slightly below its industry peers' ratio of 8.6x, which means if you buy Yue Yuen Industrial (Holdings) today, you'd be paying a decent price for it. And if you believe Yue Yuen Industrial (Holdings) should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Yue Yuen Industrial (Holdings)'s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Yue Yuen Industrial (Holdings) 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. However, with a relatively muted profit growth of 8.8% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Yue Yuen Industrial (Holdings), at least in the short term.

What This Means For You

Are you a shareholder? 551's future growth appears to have been factored into the current share price, with shares trading around industry price multiples. 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 551? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you've been keeping tabs on 551, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it's worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Yue Yuen Industrial (Holdings) as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Yue Yuen Industrial (Holdings) you should be aware of.

If you are no longer interested in Yue Yuen Industrial (Holdings), 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.