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Should You Buy Standard Life Aberdeen plc (LON:SLA)?

Standard Life Aberdeen plc (LON:SLA) saw its share price hover around a small range of £3.47 to £3.81 over the last few weeks. But is this actually reflective of the share value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Standard Life Aberdeen’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Standard Life Aberdeen

Is Standard Life Aberdeen still cheap?

According to my valuation model, Standard Life Aberdeen seems to be fairly priced at around 3.44% below my intrinsic value, which means if you buy Standard Life Aberdeen today, you’d be paying a fair price for it. And if you believe that the stock is really worth £3.6, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Standard Life Aberdeen’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Standard Life Aberdeen generate?

LSE:SLA Future Profit June 25th 18
LSE:SLA Future Profit June 25th 18

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. Standard Life Aberdeen’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in SLA’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 conviction to buy should the price fluctuates below the true value?

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Are you a potential investor? If you’ve been keeping an eye on SLA, now may not be the most advantageous 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 Standard Life Aberdeen. You can find everything you need to know about Standard Life Aberdeen in the latest infographic research report. If you are no longer interested in Standard Life Aberdeen, 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.