Arbor Realty Trust Inc (NYSE:ABR), a mortgage reits company based in United States, saw its share price hover around a small range of $8.19 to $8.75 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Arbor Realty Trust’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 Arbor Realty Trust
What’s the opportunity in Arbor Realty Trust?
Good news, investors! Arbor Realty Trust is still a bargain right now. According to my valuation, the intrinsic value for the stock is $15.73, but it is currently trading at $8.5 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Arbor Realty Trust’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, 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.
Can we expect growth from Arbor Realty Trust?
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. 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. With profit expected to grow by 38.61% over the next couple of years, the future seems bright for Arbor Realty Trust. It looks like higher cash flows 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 Arbor Realty Trust is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Arbor Realty Trust for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Arbor Realty Trust. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.