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Foxtons Group plc (LON:FOXT), is not the largest company out there, but it led the LSE gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Foxtons Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Foxtons Group
Is Foxtons Group Still Cheap?
Good news, investors! Foxtons Group is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is £0.92, but it is currently trading at UK£0.68 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Foxtons 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 Foxtons 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. 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. Foxtons Group's 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 FOXT is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 FOXT for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FOXT. 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 investment decision.