Yahoo Finance Should You Investigate Party City Holdco Inc. (NYSE:PRTY) At US$8.15?
Party City Holdco Inc. (NYSE:PRTY), which is in the specialty retail business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $12.31 and falling to the lows of $7.75. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Party City Holdco's current trading price of $8.15 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Party City Holdco’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Party City Holdco
Is Party City Holdco still cheap?
Great news for investors – Party City Holdco is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $15.18, but it is currently trading at US$8.15 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Party City Holdco’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Party City Holdco generate?
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. With profit expected to grow by 48% over the next couple of years, the future seems bright for Party City Holdco. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since PRTY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on PRTY for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PRTY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Party City Holdco. You can find everything you need to know about Party City Holdco in the latest infographic research report. If you are no longer interested in Party City Holdco, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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.
