Stock Analysis

What Does Wizz Air Holdings Plc's (LON:WIZZ) Share Price Indicate?

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LSE:WIZZ
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Wizz Air Holdings Plc (LON:WIZZ), is not the largest company out there, but it led the LSE gainers with a relatively large price hike in the past couple of weeks. As a mid-cap 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 Wizz Air Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Wizz Air Holdings

What's The Opportunity In Wizz Air Holdings?

According to my valuation model, Wizz Air Holdings seems to be fairly priced at around 4.00% above my intrinsic value, which means if you buy Wizz Air Holdings today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £19.62, then there isn’t really any room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Wizz Air Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Wizz Air Holdings look like?

earnings-and-revenue-growth
LSE:WIZZ Earnings and Revenue Growth September 2nd 2022

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 65% over the next year, the near-term future seems bright for Wizz Air Holdings. 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? WIZZ’s optimistic 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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on WIZZ, 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'd like to know more about Wizz Air Holdings as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with Wizz Air Holdings (including 1 which is concerning).

If you are no longer interested in Wizz Air Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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About LSE:WIZZ

Wizz Air Holdings

Wizz Air Holdings Plc, together with its subsidiaries, provides passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes in Europe and the Middle East.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth6
Past Performance0
Financial Health1
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Exceptional growth potential and slightly overvalued.