Telenet Group Holding NV (ENXTBR:TNET), a media company based in Belgium, received a lot of attention from a substantial price movement on the ENXTBR over the last few months, increasing to €62.35 at one point, and dropping to the lows of €51.35. 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 Telenet Group Holding’s current trading price of €53 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 Telenet Group Holding’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 Telenet Group Holding
What is Telenet Group Holding worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13% above my intrinsic value, which means if you buy Telenet Group Holding today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €46.71, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Telenet Group Holding’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
What kind of growth will Telenet Group Holding generate?
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. With profit expected to more than double over the next couple of years, the future seems bright for Telenet Group Holding. 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? TNET’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?