Yahoo Finance Should You Buy Young & Co’s Brewery PLC (LON:YNGA)?
Young & Co’s Brewery PLC (LON:YNGA), a hospitality company based in United Kingdom, saw a decent share price growth in the teens level on the AIM over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Young’s Brewery’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Young’s Brewery
What is Young’s Brewery worth?
Young’s Brewery appears to be overvalued by 78.12% at the moment, based on my discounted cash flow valuation. The stock is currently priced at UK£17.00 on the market compared to my intrinsic value of £9.54. This means that the opportunity to buy Young’s Brewery at a good price has disappeared! In addition to this, it seems like Young’s Brewery’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Young’s Brewery 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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 27.99% over the next couple of years, the future seems bright for Young’s Brewery. 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 well and truly priced in YNGA’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe YNGA should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on YNGA for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for YNGA, which means it’s worth diving deeper into other factors 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 Young’s Brewery. You can find everything you need to know about Young’s Brewery in the latest infographic research report. If you are no longer interested in Young’s Brewery, 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.