At R$21.43, Is It Time To Put Aliansce Sonae Shopping Centers SA (BVMF:ALSO3) On Your Watch List?

By
Simply Wall St
Published
March 23, 2022
BOVESPA:ALSO3
Source: Shutterstock

While Aliansce Sonae Shopping Centers SA (BVMF:ALSO3) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the BOVESPA. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Aliansce Sonae Shopping Centers’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Aliansce Sonae Shopping Centers

What's the opportunity in Aliansce Sonae Shopping Centers?

According to my valuation model, Aliansce Sonae Shopping Centers seems to be fairly priced at around 13.42% above my intrinsic value, which means if you buy Aliansce Sonae Shopping Centers today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is R$18.89, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Aliansce Sonae Shopping Centers’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Aliansce Sonae Shopping Centers?

earnings-and-revenue-growth
BOVESPA:ALSO3 Earnings and Revenue Growth March 23rd 2022

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 more than double over the next couple of years, the future seems bright for Aliansce Sonae Shopping Centers. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in ALSO3’s positive outlook, 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 ALSO3, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Aliansce Sonae Shopping Centers has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in Aliansce Sonae Shopping Centers, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.