Pivot Technology Solutions, Inc. (TSE:PTG), is not the largest company out there, but it received a lot of attention from a substantial price increase on the TSX over the last few months. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Pivot Technology Solutions’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Pivot Technology Solutions
What is Pivot Technology Solutions worth?
Great news for investors – Pivot Technology Solutions is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Pivot Technology Solutions’s ratio of 2.1x is below its peer average of 30.84x, which indicates the stock is trading at a lower price compared to the IT industry. However, given that Pivot Technology Solutions’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Pros and Cons of PTG full article.
https://finance.yahoo.com/news/now-opportunity-pivot-technology-solutions-170443225.html