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What Is Intermediate Capital Group plc’s (LON:ICP) Share Price Doing?

Intermediate Capital Group plc (LON:ICP), a capital markets company based in United Kingdom, saw a double-digit share price rise of over 10% in the past couple of months on the LSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Intermediate Capital Group’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Intermediate Capital Group

What is Intermediate Capital Group worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.35% above my intrinsic value, which means if you buy Intermediate Capital Group today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is £10.03, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Intermediate Capital Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Intermediate Capital Group generate?

LSE:ICP Future Profit June 22nd 18
LSE:ICP Future Profit June 22nd 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Intermediate Capital Group, it is expected to deliver a negative earnings growth of -7.46%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? ICP seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

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Are you a potential investor? If you’ve been keeping tabs on ICP for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on ICP should the price fluctuate below its true value.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Intermediate Capital Group. You can find everything you need to know about Intermediate Capital Group in the latest infographic research report. If you are no longer interested in Intermediate Capital Group, 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.