Although PageGroup plc (LON:PAGE) may not be the most widely known stock at the moment, it has seen significant share price volatility during recent months on the LSE, rising to a UK high of £4.89 and The UK fell to a low of £4.25. Certain stock price fluctuations can give investors a better opportunity to enter the stock, and potentially buy at a lower price. One question to answer is whether PageGroup’s current trading price of UK£4.38 reflects the true value of the small-cap? Or is it currently undervalued, providing us with a buying opportunity? Let’s take a look at PageGroup’s outlook and value based on the latest financial data to see if there are any catalysts for a price change.

View our latest analysis for PageGroups

Good news for investors – PageGroup is still trading at a bargain price. My valuation model shows that the intrinsic value for the stock is £5.77, but it is currently trading at UK£4.38 on the stock exchange, meaning there is still an opportunity to buy. More interestingly, PageGroup’s share price is quite volatile, which gives us more buying opportunities as the share price may move lower (or move higher) in the future. This is based on its high beta, which is a good indicator of how much a stock moves relative to the rest of the market.

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Future outlook is an important aspect to consider when you are looking to buy stocks, especially if you are an investor looking for growth in your portfolio. Buying a great company with a strong outlook at a cheap price is always a good investment, so let’s take a look at the company’s future prospects as well. In PageGroup’s case though, it’s expected to deliver negative earnings growth of -4.1%, which doesn’t help build its investment thesis. It appears that the risk of future uncertainty is high, at least in the near term.

Are you a shareholder? Although the page is currently not rated, the negative outlook brings some uncertainty, which equates to high risk. I suggest you think about whether you want to increase your portfolio exposure to Page, or whether diversifying into another stock might be a better move for your overall risk and return.

Are you a potential investor? If you’ve been eyeing the page for a while but have been hesitant to make the leap, I recommend you delve deeper into the stock. Given its current devaluation, now is a good time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to learn more about Pagegroup as a business, it’s important to be aware of any risks it may be exposed to. Our analysis shows 3 warning signs for pagegroups (1 should not be overlooked!) And we strongly recommend that you check them out before investing.

If you’re no longer interested in PageGroup, you can use our free platform to view our list of over 50 other stocks with high growth potential.

Have feedback on this article? Worried about content? keep in touch directly with us. Alternatively, email editorial-team(at)simplywallst.com.

This Simply Wall St article is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock, and does not take into account 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 Street has no position in any of the stocks mentioned.

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