Bragg Gaming Group Inc. (TSE:BRAG), might not be a large cap stock, but it saw significant share price movement during recent months on the TSX, rising to highs of CA$9.12 and falling to the lows of CA$6.48. 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 Bragg Gaming Group's current trading price of CA$6.54 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 Bragg Gaming Group’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 Bragg Gaming Group

Is Bragg Gaming Group Still Cheap?

According to our valuation model, Bragg Gaming Group seems to be fairly priced at around 19% below our intrinsic value, which means if you buy Bragg Gaming Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth CA$8.03, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Bragg Gaming Group has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Bragg Gaming Group look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 60% over the next year, the near-term future seems bright for Bragg Gaming Group. It looks like higher cash flow 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 already priced in BRAG’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on BRAG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.