Yahoo Finance Is It The Right Time To Buy Assura Plc (LON:AGR)?
Assura Plc (LON:AGR), a reits company based in United Kingdom, received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to £0.62 at one point, and dropping to the lows of £0.56. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Assura’s current trading price of £0.57 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 Assura’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 Assura
What’s the opportunity in Assura?
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-equity (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Assura’s ratio of 15.62x is trading slightly above its industry peers’ ratio of 10.64x, which means if you buy Assura today, you’d be paying a relatively fair price for it. And if you believe Assura should be trading in this range, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like Assura’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Assura?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 74.92% over the next couple of years, the future seems bright for Assura. 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? AGR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at AGR? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on AGR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for AGR, 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 Assura. You can find everything you need to know about Assura in the latest infographic research report. If you are no longer interested in Assura, 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.
