SSP Group plc (LON:SSPG) may not be a large-cap stock, but it’s garnered a lot of attention with significant price action on the LSE over the past few months, rising to £2.72 at one point and then back to £2. 72 British pounds fell from lows of 2.02 UK£. Some stock price movements may present investors with a better opportunity to get into the stock and potentially buy it at a lower price. One question to be answered is does SSP Group’s current trading price of £2.17 reflect the true value of the small-cap? Or is it currently undervalued and presenting us with an opportunity to buy? Let’s take a look at the SSP Group’s outlook and value based on the latest financial data to see if there are any catalysts for a price change.
Check out our latest analysis for the SSP Group
Is the SSP Group still cheap?
Good news, investors! The SSP Group is currently still a bargain. By my valuation, the stock’s intrinsic value is £3.57, but it is currently trading at £2.17 in the stock market, meaning there is still a buying opportunity now. What’s more interesting is that SSP Group’s stock price is quite volatile, which gives us more buying opportunities as the stock price could go lower (or rise higher) in the future. This is based on its high beta, which is a good indicator of how much the stock is moving relative to the rest of the market.
Can we expect growth from the SSP Group?
Future prospects are an important consideration when looking to buy a stock, especially if you’re an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a great price is always a good investment, so let’s also take a look at the company’s future expectations. In the case of SSP Group, its earnings are expected to double in the next few years, suggesting an incredibly optimistic future. If expenses don’t increase at the same rate or more, that revenue growth should translate into stronger cash flows, resulting in higher stock value.
What that means for you
Are you a shareholder? With SSPG currently undervalued, it could be a good time to increase your holdings in the stock. With an optimistic outlook on the horizon, that growth doesn’t appear to be fully priced into the share price just yet. However, there are other factors to consider, such as financial health, that could explain the current undervaluation.
Are you a potential investor? If you’ve been eyeing SSPG for a while, now might be the right time to buy the stock. The prosperous future prospects are not yet fully reflected in the current stock price, which means it is not too late to buy SSPG. Before making any investment decisions, however, you should consider other factors such as the strength of the balance sheet in order to make an informed purchase.
It can be very valuable to keep in mind what analysts are expecting from their most recent forecasts for SSP Group. Luckily, you can check out the analyst forecasts by clicking here.
If you are no longer interested in the SSP Group, you can view our list of over 50 other stocks with high growth potential on our free platform.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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