While MAV Beauty Brands Inc. (beauty–brands-shares?blueprint=2395769&utm_medium=finance_user&utm_campaign=intro&utm_source=yahoo” data-ylk=”slk:TSE:MAV;elm:context_link;itc:0″ class=”link “TSE:MAV) might not be the most widely known stock at the moment, it led the TSX gainers with a relatively large price hike in the past couple of weeks. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, 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 MAV Beauty Brands’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
What Is MAV Beauty Brands Worth?
According to my valuation model, MAV Beauty Brands seems to be fairly priced at around 13% below my intrinsic value, which means if you buy MAV Beauty Brands today, you’d be paying a fair price for it. And if you believe the company’s true value is CA$0.96, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that MAV Beauty Brands’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of MAV Beauty Brands 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