Marriott International, Inc. (NASDAQ:MAR) received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$255 at one point, and dropping to the lows of US$211. 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 Marriott International's current trading price of US$218 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Marriott International's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Marriott International Still Cheap?
Great news for investors – Marriott International is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $295.65, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Marriott International'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.
What kind of growth will Marriott International generate?
NasdaqGS:MAR Earnings and Revenue Growth August 11th 2024
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Marriott International's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.