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WNS (Holdings) Limited (NYSE:WNS), is not the largest company out there, but it saw a decent share price growth of 13% on the NYSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today we will analyse the most recent data on WNS (Holdings)’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for WNS (Holdings)
What's The Opportunity In WNS (Holdings)?
Great news for investors – WNS (Holdings) is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $64.60, but it is currently trading at US$49.96 on the share market, meaning that there is still an opportunity to buy now. However, given that WNS (Holdings)’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from WNS (Holdings)?
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. WNS (Holdings)'s earnings over the next few years are expected to increase by 45%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since WNS 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 WNS for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy WNS. 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.