Yahoo Finance What Should Investors Know About Great Portland Estates Plc’s (LON:GPOR) Long Term Outlook?
The latest earnings release Great Portland Estates Plc’s (LON:GPOR) announced in March 2018 revealed that the company turned profitable again after experiencing negative earnings in the previous financial year. Investors may find it useful to understand how market analysts view Great Portland Estates’s earnings growth outlook 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.
Check out our latest analysis for Great Portland Estates
Analysts’ expectations for next year seems pessimistic, with earnings declining by a double-digit -37%. However, the next few years show a contrast, with earnings growth becoming positive in 2020, with the bottom line increasing to UK£151m in 2021.
Even though it’s helpful to understand the growth rate each year relative to today’s value, it may be more insightful to gauge the rate at which the company is moving on average every year. The pro of this method is that we can get a better picture of the direction of Great Portland Estates’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 21%. This means that, we can anticipate Great Portland Estates will grow its earnings by 21% every year for the next couple of years.
Next Steps:
For Great Portland Estates, I’ve compiled three essential factors you should further examine:
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 GPOR 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 GPOR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GPOR? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
