At £0.784, Is It Time To Buy Countrywide plc (LON:CWD)?

Countrywide plc (LSE:CWD), a real estate company based in United Kingdom, saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £1.39 and falling to the lows of £0.78. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Countrywide's current trading price of £0.78 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Countrywide’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Countrywide

What is Countrywide worth?

According to my valuation model, Countrywide seems to be fairly priced at around 6.43% below my intrinsic value, which means if you buy Countrywide today, you’d be paying a fair price for it. And if you believe that the stock is really worth £0.84, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Countrywide’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Countrywide 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. Though in the case of Countrywide, it is expected to deliver a relatively unexciting top-line growth of 8.10% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What this means for you:

Are you a shareholder? CWD’s future growth appears to have been factored into the current share price, 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 an eye on CWD, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 Countrywide. You can find everything you need to know about Countrywide in the latest infographic research report. If you are no longer interested in Countrywide, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.