Yahoo Finance At £10.06, Is It Time To Buy Galliford Try plc (LON:GFRD)?
Galliford Try plc (LSE:GFRD), a construction company based in United Kingdom, led the LSE gainers with a relatively large price hike in the past couple of weeks. 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. But what if there is still an opportunity to buy? Let’s examine Galliford Try’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Galliford Try
What’s the opportunity in Galliford Try?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19.59% below my intrinsic value, which means if you buy Galliford Try today, you’d be paying a fair price for it. And if you believe the company’s true value is £12.51, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Galliford Try’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Galliford Try generate?
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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Galliford Try. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has already priced in GFRD’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on GFRD, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Galliford Try. You can find everything you need to know about Galliford Try in the latest infographic research report. If you are no longer interested in Galliford Try, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
