New World Development Company Limited (HKG:17), is not the largest company out there, but it received a lot of attention from a substantial price movement on the SEHK over the last few months, increasing to HK$30.50 at one point, and dropping to the lows of HK$25.05. 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 New World Development's current trading price of HK$25.50 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at New World Development's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for New World Development
What's The Opportunity In New World Development?
New World Development appears to be expensive according to my price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. I'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 40.39x is currently well-above the industry average of 6.18x, meaning that it is trading at a more expensive price relative to its peers. In addition to this, it seems like New World Development's share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of New World Development look like?
SEHK:17 Earnings and Revenue Growth September 6th 2022
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. New World Development'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? 17's optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe 17 should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you've been keeping tabs on 17 for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for 17, which means it's worth diving deeper into other factors in order to take advantage of the next price drop.
If you want to dive deeper into New World Development, you'd also look into what risks it is currently facing. For example, we've found that New World Development has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.
If you are no longer interested in New World Development, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
新世界发展股份有限公司(HKG:17)并不是最大的上市公司,但过去几个月联交所股价大幅波动,一度涨至30.5港元,并跌至25.05港元的低点,令该公司备受关注。一些股价波动可以让投资者有更好的机会买入股票,并有可能以更低的价格买入。一个需要回答的问题是,新世界发展目前25.5港元的交易价是否反映了中盘的实际价值?或者,它目前被低估了,为我们提供了买入的机会?让我们根据最新的金融数据来看看新世界发展的前景和价值观,看看是否有任何推动价格变化的催化剂。
参见我们对新世界发展的最新分析
新世界发展有什么机会?
根据我的市盈率模型,新世界发展似乎很贵,该模型将该公司的市盈率与行业平均水平进行了比较。我之所以在这种情况下使用市盈率,是因为没有足够的可见性来预测其现金流。该股目前的市盈率为40.39倍,远高于6.18倍的行业平均水平,这意味着它的交易价格比同行更高。除此之外,新世界发展的股价似乎相当稳定,这可能意味着两件事:首先,股价可能需要一段时间才能回落到有吸引力的买入区间,其次,一旦达到该值,未来低位买入的机会可能会减少。这是因为,鉴于其贝塔系数较低,该股的波动性低于大盘。
新世界发展的未来是什么样子的?
联交所:17盈利及收入增长2022年9月6日
寻求投资组合增长的投资者可能希望在购买一家公司的股票之前考虑其前景。以低廉的价格收购一家前景稳健的伟大公司永远是一笔不错的投资,所以让我们也来看看该公司的未来预期。新世界发展未来几年的收入预计将翻一番,预示着非常乐观的未来。这应该会带来更强劲的现金流,从而推动更高的股价。
这对你意味着什么
你是股东吗?17年乐观的未来增长似乎已被计入目前的股价,股价高于行业市盈率。在目前的价格下,股东们可能会问一个不同的问题--我应该卖出吗?如果你认为17应该在当前价格以下交易,那么逢高卖出,并在价格跌至行业水平时再次买入,市盈率可能是有利可图的。但在你做出这个决定之前,先看看它的基本面是否发生了变化。
你是潜在的投资者吗?如果你关注这只股票已经有一段时间了,现在可能不是买入这只股票的最佳时机。这一价格已经超过了业内同行,这意味着错误定价很可能不会带来更多的好处。然而,乐观的前景对17个人来说是令人鼓舞的,这意味着为了利用下一次价格下跌,值得更深入地研究其他因素。
如果你想更深入地研究新世界发展,你还应该看看它目前面临的风险是什么。比如我们发现新世界发展有3个警示标志(2不可忽视!)在进一步分析之前,这一点值得你注意。
如果你对新世界发展不再感兴趣,你可以使用我们的免费平台查看我们的其他50多只高增长潜力股票的名单。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。