Is It Time To Consider Buying Galliford Try Holdings plc (LON:GFRD)?

Galliford Try Holdings plc (LON:GFRD), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the LSE. The company is now trading at yearly-high levels following the recent surge in its share price. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Galliford Try Holdings’s outlook and valuation to see if the opportunity still exists.

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Is Galliford Try Holdings Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 18.69% above our intrinsic value, which means if you buy Galliford Try Holdings today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is £4.04, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Galliford Try Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.

View our latest analysis for Galliford Try Holdings

What kind of growth will Galliford Try Holdings 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. 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 grow by 22% over the next couple of years, the future seems bright for Galliford Try Holdings. 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 GFRD’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 GFRD, 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.

If you'd like to know more about Galliford Try Holdings as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for Galliford Try Holdings and we think they deserve your attention.

If you are no longer interested in Galliford Try Holdings, 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.