NH Hotel Group SA. (BME:NHH), a hospitality company based in Spain, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of €6.02 to €6.58. However, is this the true valuation level 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 our latest analysis for NH Hotel Group
Is NH Hotel Group still cheap?Good news, investors! NH Hotel Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is €8.54, but it is currently trading at €6.42 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because NH Hotel Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from NH Hotel Group?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 83.46%, 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? Since NHH 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NHH for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NHH. 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 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.