Should You Investigate Northview Apartment Real Estate Investment Trust (TSE:NVU.UN) At CA$28.49?

Northview Apartment Real Estate Investment Trust (TSE:NVU.UN), which is in the reits business, and is based in Canada, saw a double-digit share price rise of over 10% in the past couple of months on the TSX. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Northview Apartment Real Estate Investment Trust’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Northview Apartment Real Estate Investment Trust

Is Northview Apartment Real Estate Investment Trust still cheap?

Great news for investors – Northview Apartment Real Estate Investment Trust is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is CA$43.17, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Northview Apartment Real Estate Investment Trust’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will Northview Apartment Real Estate Investment Trust generate?

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. Northview Apartment Real Estate Investment Trust’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since NVU.UN is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on NVU.UN for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NVU.UN. 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.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Northview Apartment Real Estate Investment Trust. You can find everything you need to know about Northview Apartment Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Northview Apartment Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.