Yahoo Finance How Do Analysts See Ten Entertainment Group plc (LON:TEG) Performing In The Next Couple Of Years?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Ten Entertainment Group plc's (LON:TEG) released its most recent earnings update in April 2019, which indicated that the company gained from a sizeable tailwind, eventuating to a high double-digit earnings growth of 57%. Investors may find it useful to understand how market analysts predict Ten Entertainment Group's earnings growth trajectory 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 Ten Entertainment Group
Market analysts' consensus outlook for this coming year seems buoyant, with earnings increasing by a significant 65%. This high growth in earnings is expected to continue, bringing the bottom line up to UK£16m by 2022.
Even though it’s informative understanding the growth year by year relative to today’s level, it may be more insightful to analyze the rate at which the business is rising or falling on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of Ten Entertainment Group's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 11%. This means, we can assume Ten Entertainment Group will grow its earnings by 11% every year for the next couple of years.
Next Steps:
For Ten Entertainment Group, I've put together three fundamental factors you should look at:
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 TEG 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 TEG is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TEG? 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. Thank you for reading.
