Satellite Solutions Worldwide Group plc (AIM:SAT), a telecommunication services company based in United Kingdom, saw a decent share price growth in the teens level on the AIM over the last few months. Less covered, small-stocks like SAT sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could SAT still be trading at a low price relative to its actual value? Let’s examine SAT’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for SAT

Is SAT still cheap?

According to my valuation model, the stock is currently overvalued by about 40%, trading at £0.08 compared to my intrinsic value of £0.06. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since SAT’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much SAT moves relative to the rest of the market.

Can we expect growth from SAT?

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 SAT future expectations. With revenues expected to grow by 51.79% over the next couple of years, the future seems bright for SAT. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in SAT’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe SAT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on SAT for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for SAT, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Satellite Solutions Worldwide Group. You can find everything you need to know about SAT in the latest infographic research report. If you are no longer interested in Satellite Solutions Worldwide Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.