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Galliford Try Holdings plc (LON:GFRD), might not be a large cap stock, but it saw a significant share price rise of 31% in the past couple of months on the LSE. The company is now trading at yearly-high levels following the recent surge in its share price. 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 take a look at Galliford Try Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Galliford Try Holdings
What Is Galliford Try Holdings Worth?
Good news, investors! Galliford Try Holdings is still a bargain right now. According to our valuation, the intrinsic value for the stock is £5.97, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Galliford Try Holdings’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Galliford Try Holdings generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Though in the case of Galliford Try Holdings, it is expected to deliver a negative earnings growth of -8.4%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? Although GFRD is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to GFRD, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on GFRD for a while, but hesitant on making the leap, we recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
If you want to dive deeper into Galliford Try Holdings, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Galliford Try Holdings has 1 warning sign and it would be unwise to ignore it.