What Is Galliford Try plc's (LON:GFRD) Share Price Doing?

Galliford Try plc (LON:GFRD), which is in the construction business, and is based in United Kingdom, saw a double-digit share price rise of over 10% in the past couple of months on the LSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Galliford Try’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Galliford Try

What's the opportunity in Galliford Try?

According to my valuation model, Galliford Try seems to be fairly priced at around 10.04% above my intrinsic value, which means if you buy Galliford Try today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £6.06, there’s only an insignificant downside when the price falls to its real value. What's more, Galliford Try’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Galliford Try look like?

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. 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. With profit expected to grow by 45% over the next couple of years, the future seems bright for Galliford Try. 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 financial strength of the company. 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 optimistic prospect is encouraging for the company, which means it’s worth further examining 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 Galliford Try. You can find everything you need to know about Galliford Try in the latest infographic research report. If you are no longer interested in Galliford Try, 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.