Is Now An Opportune Moment To Examine Robert Walters plc (LON:RWA)?

Robert Walters plc (LON:RWA), might not be a large cap stock, but it saw a decent share price growth of 13% on the LSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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, could the stock still be trading at a relatively cheap price? Let’s take a look at Robert Walters’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Robert Walters

What's The Opportunity In Robert Walters?

According to our valuation model, Robert Walters seems to be fairly priced at around 2.63% above our intrinsic value, which means if you buy Robert Walters today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £3.90, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Robert Walters’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.

What does the future of Robert Walters 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. With profit expected to grow by 69% over the next couple of years, the future seems bright for Robert Walters. 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 RWA’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 an eye on RWA, 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.

If you want to dive deeper into Robert Walters, you'd also look into what risks it is currently facing. At Simply Wall St, we found 2 warning signs for Robert Walters and we think they deserve your attention.

If you are no longer interested in Robert Walters, 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.