In This Article:
While Green Brick Partners, Inc. (NYSE:GRBK) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$83.77 and falling to the lows of US$68.02. 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 Green Brick Partners' current trading price of US$68.68 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Green Brick Partners’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Green Brick Partners
What Is Green Brick Partners Worth?
Great news for investors – Green Brick Partners is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Green Brick Partners’s ratio of 8.78x is below its peer average of 11.18x, which indicates the stock is trading at a lower price compared to the Consumer Durables industry. However, given that Green Brick Partners’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Green Brick Partners look like?
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. Green Brick Partners' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since GRBK is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit 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 financial health to consider, which could explain the current price multiple.