At د.إ4.39, Is Emaar Development PJSC (DFM:EMAARDEV) Worth Looking At Closely?

While Emaar Development PJSC (DFM:EMAARDEV) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the DFM over the last few months, increasing to د.إ4.68 at one point, and dropping to the lows of د.إ4.07. 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 Emaar Development PJSC's current trading price of د.إ4.39 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 Emaar Development PJSC’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 Emaar Development PJSC

Is Emaar Development PJSC still cheap?

Good news, investors! Emaar Development PJSC is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Emaar Development PJSC’s ratio of 6.55x is below its peer average of 13.47x, which indicates the stock is trading at a lower price compared to the Real Estate industry. Emaar Development PJSC’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Emaar Development PJSC look like?

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. Emaar Development PJSC'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.

What this means for you:

Are you a shareholder? Since EMAARDEV is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on EMAARDEV for a while, now might be the time to make a leap. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EMAARDEV. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment.

It can be quite valuable to consider what analysts expect for Emaar Development PJSC from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Emaar Development PJSC, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.