Land Securities Group plc (LSE:LAND), a reits company based in United Kingdom, received a lot of attention from a substantial price movement on the LSE in the over the last few months, increasing to £10.34 at one point, and dropping to the lows of £9.17. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Land Securities Group’s current trading price of £9.87 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 Land Securities Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Land Securities Group
Is Land Securities Group still cheap?
The stock is currently trading at £9.87 on the share market, which means it is overvalued by 34% compared to my intrinsic value of £7.37. This means that the opportunity to buy Land Securities Group at a good price has disappeared! Another thing to keep in mind is that Land Securities Group’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Land Securities Group 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. Land Securities Group’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? Land Securities Group’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe Land Securities Group should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.