What Do Analysts Think About Greek Organization of Football Prognostics SA.'s (ATH:OPAP) Long Term Outlook?

The most recent earnings release Greek Organization of Football Prognostics SA.'s (ATSE:OPAP) announced in December 2017 signalled that the business endured a major headwind with earnings falling by -25.86%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive Greek Organization of Football Prognostics's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Greek Organization of Football Prognostics

Market analysts' consensus outlook for this coming year seems optimistic, with earnings climbing by a significant 50.59%. This high growth in earnings is expected to continue, bringing the bottom line up to €246.83M by 2021.

While it’s useful to understand the growth year by year relative to today’s figure, it may be more insightful evaluating the rate at which the earnings are growing on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Greek Organization of Football Prognostics's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 14.42%. This means, we can expect Greek Organization of Football Prognostics will grow its earnings by 14.42% every year for the next few years.

Next Steps:

For Greek Organization of Football Prognostics, I've compiled three essential factors you should further examine:

1. 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.
2. Valuation: What is OPAP 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 OPAP is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of OPAP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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.