China Merchants Port Holdings Company Limited (HKG:144), is not the largest company out there, but it saw a significant share price rise of 25% in the past couple of months on the SEHK. The recent jump in the share price has meant that the company is trading at close to its 52-week high. 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, what if the stock is still a bargain? Let's examine China Merchants Port Holdings's valuation and outlook in more detail to determine if there's still a bargain opportunity.

Is China Merchants Port Holdings Still Cheap?

According to our valuation model, China Merchants Port Holdings seems to be fairly priced at around 9.11% above our intrinsic value, which means if you buy China Merchants Port Holdings today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is HK$10.69, there's only an insignificant downside when the price falls to its real value. In addition to this, China Merchants Port Holdings has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will China Merchants Port Holdings generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of China Merchants Port Holdings, it is expected to deliver a relatively unexciting earnings growth of 9.7%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? 144's 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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping tabs on 144, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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 China Merchants Port Holdings, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for China Merchants Port Holdings you should know about.

If you are no longer interested in China Merchants Port 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.