What Is Cleanaway Waste Management Limited's (ASX:CWY) Share Price Doing?

Cleanaway Waste Management Limited (ASX:CWY), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the ASX. The company is inching closer to its yearly highs following the recent share price climb. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Cleanaway Waste Management’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Cleanaway Waste Management

What Is Cleanaway Waste Management Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 5.6% below our intrinsic value, which means if you buy Cleanaway Waste Management today, you’d be paying a reasonable price for it. And if you believe the company’s true value is A$2.73, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Cleanaway Waste Management’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Cleanaway Waste Management?

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. Cleanaway Waste Management'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? CWY’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on CWY, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Cleanaway Waste Management, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Cleanaway Waste Management and you'll want to know about these.

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

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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.