While Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) might not have the largest market cap around , it saw a significant share price rise of 141% in the past couple of months on the SZSE. The company is now trading at yearly-high levels following the recent surge in its share price. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's examine Jiangsu Hoperun Software's valuation and outlook in more detail to determine if there's still a bargain opportunity.
What Is Jiangsu Hoperun Software Worth?
According to our valuation model, Jiangsu Hoperun Software seems to be fairly priced at around 14% below our intrinsic value, which means if you buy Jiangsu Hoperun Software today, you'd be paying a fair price for it. And if you believe that the stock is really worth CN¥52.37, then there isn't much room for the share price grow beyond what it's currently trading. In addition to this, Jiangsu Hoperun Software has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Jiangsu Hoperun Software look like?
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. Jiangsu Hoperun Software's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger 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 300339'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 financial strength of the company. 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 300339, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Our analysis shows 2 warning signs for Jiangsu Hoperun Software (1 is a bit concerning!) and we strongly recommend you look at them before investing.
If you are no longer interested in Jiangsu Hoperun Software, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
