Yahoo Finance How Do Analysts See AB Dynamics Plc (LON:ABDP) Performing Over The Next Few Years?
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AB Dynamics Plc’s (LON:ABDP) announced its latest earnings update in August 2018, which showed that the business gained from a large tailwind, eventuating to a high double-digit earnings growth of 80%. Below, I’ve laid out key numbers on how market analysts predict AB Dynamics’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for AB Dynamics
Analysts’ outlook for the coming year seems buoyant, with earnings rising by a robust 38%. This growth seems to continue into the following year with rates reaching double digit 79% compared to today’s earnings, and finally hitting UK£16m by 2022.
While it’s informative understanding the rate of growth year by year relative to today’s value, it may be more beneficial determining the rate at which the earnings are moving on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of AB Dynamics’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 27%. This means, we can anticipate AB Dynamics will grow its earnings by 27% every year for the next few years.
Next Steps:
For AB Dynamics, I’ve compiled three essential aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is ABDP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABDP is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ABDP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
