Today we're going to take a look at the well-established The Liberty SiriusXM Group (NASDAQ:LSXM.K). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Liberty SiriusXM Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Liberty SiriusXM Group
What's the opportunity in Liberty SiriusXM Group?
Great news for investors – Liberty SiriusXM Group is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $65.52, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Liberty SiriusXM Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Liberty SiriusXM Group?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted revenue growth of 5.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Liberty SiriusXM Group, at least in the short term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since LSXM.K is currently undervalued, it may be a great time to increase your holdings in the stock. 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 LSXM.K for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LSXM.K. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.