Clear Channel Outdoor Holdings Inc (NYSE:CCO), a media company based in United States, See our latest analysis for CCO

Is CCO still cheap?

According to my valuation model, the stock is currently overvalued by about 61%, trading at $4.1 compared to my intrinsic value of $1.6. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since CCO’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much CCO moves relative to the rest of the market.

What does the future of CCO look like?

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 CCO future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for CCO, at least in the near future.

What this means for you:

Are you a shareholder? If you believe CCO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the uncertainty from negative growth in the future, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on CCO for a while, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy?

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