28-03-2025
Should You Investigate Revolution Beauty Group plc (LON:REVB) At UK£0.13?
Revolution Beauty Group plc (LON:REVB), is not the largest company out there, but it saw a significant share price rise of 25% in the past couple of months on the AIM. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Let's examine Revolution Beauty Group's valuation and outlook in more detail to determine if there's still a bargain opportunity.
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The stock seems fairly valued at the moment according to our valuation model. It's trading around 8.6% below our intrinsic value, which means if you buy Revolution Beauty Group today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth £0.14, then there isn't much room for the share price grow beyond what it's currently trading. Although, there may be an opportunity to buy in the future. This is because Revolution Beauty Group'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.
See our latest analysis for Revolution Beauty Group
Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with an extremely negative double-digit change in profit expected next year, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Revolution Beauty Group, at least in the near future.
Are you a shareholder? REVB seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you've been keeping an eye on REVB for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there's less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven't considered today, which can help gel your views on REVB should the price fluctuate below its true value.
If you'd like to know more about Revolution Beauty Group as a business, it's important to be aware of any risks it's facing. Our analysis shows 3 warning signs for Revolution Beauty Group (2 are concerning!) and we strongly recommend you look at these before investing.
If you are no longer interested in Revolution Beauty Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
