Cheap stock #2 : Galaxy Digitalhttps://www.fool.ca/2021/12/08/alert-these-cheap-stocks-wont-be-cheap-too-long/ Cheap stock #2
Galaxy Digital Holdings (TSX:GLXY) is another temporarily beaten-down stock. It’s down 36% from its all-time high. Meanwhile, Bitcoin is down 25% from its all-time high. In other words, GLXY is closely correlated with the crypto market cycle.
The crypto market is remarkably volatile, but its long-term trend is upwards. This is why you can’t expect to buy Bitcoin for $300 ever again. It’s also why Galaxy Digital’s undervaluation is temporary. The stock should rebound strongly in the months ahead.
At the moment, Galaxy Digital stock trades at just $26.2. The price-to-earnings ratio is an unbelievable 5.85. The company also has roughly $2 billion in digital assets (cryptocurrencies) on its balance sheet. Meanwhile, its market cap is $5.84 billion. This implies that 34% of each share is backed by digital assets on the book.
Galaxy Digital is a cheap stock that could look a lot cheaper if the crypto market rebounds.