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Should You Investigate Bragg Gaming Group Inc. (TSE:BRAG) At CA$8.29?

Bragg Gaming Group Inc. (TSE:BRAG), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the TSX over the last few months. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Bragg Gaming Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See 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 the company’s true value is CA$10.29, then there’s not much of an upside to gain from mispricing. Furthermore, Bragg Gaming Group’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Bragg Gaming Group generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

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 a negative profit growth of -6.0% expected next year, near-term growth certainly doesn’t appear to be a driver for a buy decision for Bragg Gaming Group. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Currently, BRAG appears to be trading around its fair value, 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 beneficial 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.

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Are you a potential investor? If you’ve been keeping an eye on BRAG for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears 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 crystalize your views on BRAG should the price fluctuate below its true value.

If you'd like to know more about Bragg Gaming Group as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Bragg Gaming Group has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in Bragg Gaming 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) simplywallst.com.

This 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.