While RS Group plc (LON:RS1) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to UK￡8.40 at one point, and dropping to the lows of UK￡7.32. 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 RS Group's current trading price of UK￡7.37 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at RS Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for RS Group

Is RS Group Still Cheap?

Great news for investors – RS Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is ￡9.21, but it is currently trading at UK￡7.37 on the share market, meaning that there is still an opportunity to buy now. RS Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of RS Group 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. With profit expected to grow by 43% over the next couple of years, the future seems bright for RS 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? Since RS1 is currently undervalued, it may be a great time to accumulate more of 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on RS1 for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RS1. 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.