ManpowerGroup Inc. (NYSE:MAN), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$116 and falling to the lows of US$87.02. 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 ManpowerGroup's current trading price of US$94.29 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 ManpowerGroup’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 ManpowerGroup

What's the opportunity in ManpowerGroup?

Great news for investors – ManpowerGroup is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that ManpowerGroup’s ratio of 13.19x is below its peer average of 21.29x, which indicates the stock is trading at a lower price compared to the Professional Services industry. However, given that ManpowerGroup’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 kind of growth will ManpowerGroup generate?

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 the company's future expectations. ManpowerGroup's earnings over the next few years are expected to increase by 37%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since MAN is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current price multiple.