IQE plc (LON:IQE), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the AIM over the last few months, increasing to UK￡0.35 at one point, and dropping to the lows of UK￡0.19. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether IQE's current trading price of UK￡0.19 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 IQE’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for IQE

Is IQE Still Cheap?

Great news for investors – IQE is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is ￡0.32, but it is currently trading at UK￡0.19 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because IQE’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of IQE look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. IQE's earnings over the next few years are expected to increase by 38%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since IQE is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 IQE for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IQE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.