Why Plaza S.A. (SNSE:MALLPLAZA) Could Be Worth Watching

Plaza S.A. (SNSE:MALLPLAZA), is not the largest company out there, but it saw a decent share price growth in the teens level on the SNSE over the last few months. With many analysts covering the mid-cap 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? Today I will analyse the most recent data on Plaza’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Plaza

What's The Opportunity In Plaza?

According to my valuation model, Plaza seems to be fairly priced at around 11.80% above my intrinsic value, which means if you buy Plaza today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth CLP1032.22, there’s only an insignificant downside when the price falls to its real value. Furthermore, Plaza’s low beta implies that the stock is less volatile than the wider market.

What does the future of Plaza look like?

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. With profit expected to more than double over the next couple of years, the future seems bright for Plaza. 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 MALLPLAZA’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 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 tabs on MALLPLAZA, now may not be the most optimal 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for Plaza and we think they deserve your attention.

If you are no longer interested in Plaza, 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.