Why Muhibbah Engineering (M) Bhd. (KLSE:MUHIBAH) Could Be Worth Watching

While Muhibbah Engineering (M) Bhd. (KLSE:MUHIBAH) might not have the largest market cap around , it led the KLSE gainers with a relatively large price hike in the past couple of weeks. The recent jump in the share price has meant that the company is trading at close to its 52-week high. 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 take a look at Muhibbah Engineering (M) Bhd’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Muhibbah Engineering (M) Bhd

What Is Muhibbah Engineering (M) Bhd Worth?

Good news, investors! Muhibbah Engineering (M) Bhd is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is MYR1.30, but it is currently trading at RM0.97 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Muhibbah Engineering (M) Bhd’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Muhibbah Engineering (M) Bhd look like?

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. 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. However, with a relatively muted revenue growth of 5.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Muhibbah Engineering (M) Bhd, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since MUHIBAH is currently undervalued, 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 undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MUHIBAH for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MUHIBAH. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

It can be quite valuable to consider what analysts expect for Muhibbah Engineering (M) Bhd from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Muhibbah Engineering (M) Bhd, 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.