While Mah Sing Group Berhad (KLSE:MAHSING) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the KLSE. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Mah Sing Group Berhad's outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Mah Sing Group Berhad
Mah Sing Group Berhad is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. 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 19.06x is currently well-above the industry average of 13.24x, meaning that it is trading at a more expensive price relative to its peers. In addition to this, it seems like Mah Sing Group Berhad's share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
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. 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. Mah Sing Group Berhad's earnings over the next few years are expected to increase by 29%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder? It seems like the market has well and truly priced in MAHSING's positive outlook, with shares trading above industry price multiples. However, this brings up another question - is now the right time to sell? If you believe MAHSING should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.