Yahoo Finance Is It Too Late To Buy Imperial Brands PLC (LON:IMB)?
Today we’re going to take a look at the well-established Imperial Brands PLC (LON:IMB). The company’s stock saw a double-digit share price rise of over 10% in the past couple of months on the LSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Imperial Brands’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. View out our latest analysis for Imperial Brands
What’s the opportunity in Imperial Brands?
Good news, investors! Imperial Brands is still a bargain right now. According to my valuation, the intrinsic value for the stock is £42.17, but it is currently trading at UK£25.96 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Imperial Brands’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, 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 does the future of Imperial Brands look like?
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 50.09% over the next couple of years, the future seems bright for Imperial Brands. 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? Since IMB is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 IMB for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IMB. 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 Imperial Brands. You can find everything you need to know about Imperial Brands in the latest infographic research report. If you are no longer interested in Imperial Brands, 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.
