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.
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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.
新世界發展股份有限公司(HKG:17)並不是最大的上市公司,但過去幾個月聯交所股價大幅波動,一度漲至30.5港元,並跌至25.05港元的低點,令該公司備受關注。一些股價波動可以讓投資者有更好的機會買入股票,並有可能以更低的價格買入。一個需要回答的問題是,新世界發展目前25.5港元的交易價是否反映了中盤的實際價值?或者,它目前被低估了,為我們提供了買入的機會?讓我們根據最新的金融數據來看看新世界發展的前景和價值觀,看看是否有任何推動價格變化的催化劑。
參見我們對新世界發展的最新分析
新世界發展有什麼機會?
根據我的市盈率模型,新世界發展似乎很貴,該模型將該公司的市盈率與行業平均水平進行了比較。我之所以在這種情況下使用市盈率,是因為沒有足夠的可見性來預測其現金流。該股目前的市盈率為40.39倍,遠高於6.18倍的行業平均水平,這意味着它的交易價格比同行更高。除此之外,新世界發展的股價似乎相當穩定,這可能意味着兩件事:首先,股價可能需要一段時間才能回落到有吸引力的買入區間,其次,一旦達到該值,未來低位買入的機會可能會減少。這是因為,鑑於其貝塔係數較低,該股的波動性低於大盤。
新世界發展的未來是什麼樣子的?
聯交所:17盈利及收入增長2022年9月6日
尋求投資組合增長的投資者可能希望在購買一家公司的股票之前考慮其前景。以低廉的價格收購一家前景穩健的偉大公司永遠是一筆不錯的投資,所以讓我們也來看看該公司的未來預期。新世界發展未來幾年的收入預計將翻一番,預示着非常樂觀的未來。這應該會帶來更強勁的現金流,從而推動更高的股價。
這對你意味着什麼
你是股東嗎?17年樂觀的未來增長似乎已被計入目前的股價,股價高於行業市盈率。在目前的價格下,股東們可能會問一個不同的問題--我應該賣出嗎?如果你認為17應該在當前價格以下交易,那麼逢高賣出,並在價格跌至行業水平時再次買入,市盈率可能是有利可圖的。但在你做出這個決定之前,先看看它的基本面是否發生了變化。
你是潛在的投資者嗎?如果你關注這隻股票已經有一段時間了,現在可能不是買入這隻股票的最佳時機。這一價格已經超過了業內同行,這意味着錯誤定價很可能不會帶來更多的好處。然而,樂觀的前景對17個人來説是令人鼓舞的,這意味着為了利用下一次價格下跌,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發展,你還應該看看它目前面臨的風險是什麼。比如我們發現新世界發展有3個警示標誌(2不可忽視!)在進一步分析之前,這一點值得你注意。
如果你對新世界發展不再感興趣,你可以使用我們的免費平臺查看我們的其他50多隻高增長潛力股票的名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。