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Thunderbird Entertainment Group Inc. (CVE:TBRD), is not the largest company out there, but it received a lot of attention from a substantial price movement on the TSXV over the last few months, increasing to CA$2.12 at one point, and dropping to the lows of CA$1.62. 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 Thunderbird Entertainment Group's current trading price of CA$1.76 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Thunderbird Entertainment Group’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 Thunderbird Entertainment Group
What Is Thunderbird Entertainment Group Worth?
According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 18.75x is currently trading slightly above its industry peers’ ratio of 16.52x, which means if you buy Thunderbird Entertainment Group today, you’d be paying a relatively reasonable price for it. And if you believe that Thunderbird Entertainment Group should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. Is there another opportunity to buy low in the future? Since Thunderbird Entertainment Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Thunderbird Entertainment 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. With profit expected to grow by 26% over the next year, the near-term future seems bright for Thunderbird Entertainment Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.