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While Entain Plc (LON:ENT) might not have the largest market cap around , it led the LSE gainers with a relatively large price hike in the past couple of weeks. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Entain’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Entain
What's The Opportunity In Entain?
Good news, investors! Entain is still a bargain right now. According to our valuation, the intrinsic value for the stock is £11.04, but it is currently trading at UK£7.50 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Entain’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.
What does the future of Entain look like?
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. With profit expected to grow by 81% over the next year, the near-term future seems bright for Entain. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since ENT is currently undervalued, it may be a great time to increase 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ENT for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ENT. 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.