Koppers Holdings Inc. (NYSE:KOP), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$40.71 at one point, and dropping to the lows of US$34.33. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Koppers Holdings' current trading price of US$34.77 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Koppers Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What Is Koppers Holdings Worth?

Great news for investors – Koppers Holdings is still trading at a fairly cheap price according to our price multiple model, where we compare 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 Koppers Holdings's ratio of 9.03x is below its peer average of 26.11x, which indicates the stock is trading at a lower price compared to the Chemicals industry. However, given that Koppers Holdings'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 Koppers Holdings look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Koppers Holdings, it is expected to deliver a relatively unexciting earnings growth of 8.6%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for Koppers Holdings, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since KOP is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you've been keeping an eye on KOP for a while, now might be the time to make a leap. Its future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy KOP. 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.

So while earnings quality is important, it's equally important to consider the risks facing Koppers Holdings at this point in time. When we did our research, we found 2 warning signs for Koppers Holdings (1 is significant!) that we believe deserve your full attention.

If you are no longer interested in Koppers 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.