NH Hotel Group SA (BME:NHH), a hospitality company based in Spain, saw its share price hover around a small range of €6.11 to €6.58 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at NH Hotel Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for NH Hotel Group
What is NH Hotel Group worth?According to my valuation model, NH Hotel Group seems to be fairly priced at around 15.02% below my intrinsic value, which means if you buy NH Hotel Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth €7.48, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since NH Hotel Group’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.
What does the future of NH Hotel Group 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. NH Hotel Group’s earnings over the next few years are expected to increase by 82.73%, 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? NHH’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 NHH, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on NH Hotel Group. You can find everything you need to know about NH Hotel Group in the latest infographic research report. If you are no longer interested in NH Hotel Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.