Is It Time To Consider Buying WSP Global Inc. (TSE:WSP)?

Today we're going to take a look at the well-established WSP Global Inc. (TSE:WSP). The company's stock received a lot of attention from a substantial price increase on the TSX over the last few months. The recent jump in the share price has meant that the company is trading at close to its 52-week high. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at WSP Global’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In WSP Global?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 15.77% above our intrinsic value, which means if you buy WSP Global today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CA$245.08, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, WSP Global’s share price may be more stable over time (relative to the market), as indicated by its low beta.

See our latest analysis for WSP Global

What does the future of WSP Global look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. WSP Global's earnings over the next few years are expected to increase by 70%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? WSP’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 track record of its management team. 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?

Are you a potential investor? If you’ve been keeping an eye on WSP, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of WSP Global.

If you are no longer interested in WSP Global, 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.