Have Investors Already Priced In TClarke plc’s (LON:CTO) Growth?

Author: Miguel Kauffman / Source: Simply Wall St

TClarke plc (LSE:CTO), a construction company based in United Kingdom, saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £0.9 and falling to the lows of £0.72. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether TClarke’s current trading price of £0.77 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 TClarke’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What is TClarke worth?

Great news for investors – TClarke is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is £1.57, but it is currently trading at UK£0.77 on the share market, meaning that there is still an opportunity to buy now. TClarke’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from TClarke?

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