Should You Investigate WSP Global Inc. (TSE:WSP) At CA$183?

Let's talk about the popular WSP Global Inc. (TSE:WSP). The company's shares received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$188 at one point, and dropping to the lows of CA$168. 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 WSP Global's current trading price of CA$183 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the 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 there are any catalysts for a price change.

Check out our latest analysis for WSP Global

Is WSP Global Still Cheap?

Great news for investors – WSP Global is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$249.53, but it is currently trading at CA$183 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, WSP Global’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will WSP Global generate?

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. With profit expected to grow by 43% over the next year, the near-term future seems bright for WSP Global. 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? Since WSP is currently undervalued, 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 undervaluation.

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

If you want to dive deeper into WSP Global, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 2 warning signs with WSP Global, and understanding them should be part of your investment process.

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.