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Boyd Group Services Inc. (TSE:BYD), is not the largest company out there, but it saw significant share price movement during recent months on the TSX, rising to highs of CA$232 and falling to the lows of CA$204. 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 Boyd Group Services' current trading price of CA$218 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 Boyd Group Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Boyd Group Services
Is Boyd Group Services Still Cheap?
Great news for investors – Boyd Group Services is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is CA$302.46, but it is currently trading at CA$218 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Boyd Group Services’s share price is theoretically 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.
Can we expect growth from Boyd Group Services?
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. Boyd Group Services' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since BYD is currently undervalued, it may be a great time to increase 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 BYD for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BYD. 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 buy.