Yahoo Finance What Do Analysts Think About IWG PLC’s (LON:IWG) Growth?
In December 2017, IWG PLC (LON:IWG) announced its latest earnings update, which indicated that the business faced a substantial headwind with earnings falling by -17.87%. Today I want to provide a brief commentary on how market analysts view IWG’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for IWG
Analysts’ outlook for next year seems buoyant, with earnings increasing by a robust 18.04%. This growth seems to continue into the following year with rates arriving at double digit 40.15% compared to today’s earnings, and finally hitting UK£186.02m by 2021.
Although it is useful to understand the growth year by year relative to today’s figure, it may be more insightful to evaluate the rate at which the company is rising or falling on average every year. The pro of this approach is that we can get a bigger picture of the direction of IWG’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 14.47%. This means, we can anticipate IWG will grow its earnings by 14.47% every year for the next few years.
Next Steps:
For IWG, I’ve put together three essential aspects 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 IWG 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 IWG is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of IWG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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.
