Is Now The Time To Look At Buying YouGov plc (LON:YOU)?

While YouGov plc (LON:YOU) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the AIM over the last few months. 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. But what if there is still an opportunity to buy? Let’s take a look at YouGov’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for YouGov

Is YouGov Still Cheap?

According to my valuation model, YouGov seems to be fairly priced at around 11% below my intrinsic value, which means if you buy YouGov today, you’d be paying a reasonable price for it. And if you believe the company’s true value is £10.29, then there’s not much of an upside to gain from mispricing. In addition to this, YouGov has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will YouGov generate?

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. YouGov's earnings over the next few years are expected to increase by 65%, 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? It seems like the market has already priced in YOU’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 YOU, now may not be the most advantageous 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.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - YouGov has 1 warning sign we think you should be aware of.

If you are no longer interested in YouGov, 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.