Market analysts’ consensus outlook for next year seems pessimistic, with earnings turning into a loss in 2019. Though this loss doesn’t seem to last long as INTU turns profitable again by 2021 with earnings expected to be -UK£452.57m.
While it is helpful to understand the growth year by year relative to today’s value, it may be more valuable estimating the rate at which the earnings are rising or falling on average every year. The advantage of this approach is that we can get a better picture of the direction of intu properties’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 46.20%. This means that, we can assume intu properties will grow its earnings by 46.20% every year for the next couple of years.
For intu properties, there are three relevant factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is INTU worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether INTU is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of INTU? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!