While Coast Entertainment Holdings Limited (ASX:CEH) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the ASX. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine Coast Entertainment Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Coast Entertainment Holdings

What Is Coast Entertainment Holdings Worth?

Good news, investors! Coast Entertainment Holdings is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is A$0.66, but it is currently trading at AU$0.47 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 Coast Entertainment Holdings’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 Coast Entertainment Holdings 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. In the upcoming year, Coast Entertainment Holdings' earnings are expected to increase by 71%, 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 CEH is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 CEH 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 CEH. 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 investment decision.