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The most recent earnings announcement TTL Beteiligungs- und Grundbesitz-AG's (FRA:TTO) released in December 2018 revealed that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. Investors may find it useful to understand how market analysts view TTL Beteiligungs- und Grundbesitz-AG's earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for TTL Beteiligungs- und Grundbesitz-AG
Market analysts' prospects for next year seems positive, with earnings climbing by a significant 80%. This strong growth in earnings is expected to continue, bringing the bottom line up to €8.0m by 2022.
Although it’s useful to be aware of the growth year by year relative to today’s figure, it may be more beneficial to analyze the rate at which the business is rising or falling every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of TTL Beteiligungs- und Grundbesitz-AG's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21%. This means, we can assume TTL Beteiligungs- und Grundbesitz-AG will grow its earnings by 21% every year for the next couple of years.
Next Steps:
For TTL Beteiligungs- und Grundbesitz-AG, I've put together three essential factors you should look at:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is TTO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TTO is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TTO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.