What Is CRH plc's (ISE:CRG) Share Price Doing?

Today we're going to take a look at the well-established CRH plc (ISE:CRG). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the ISE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at CRH’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for CRH

What is CRH worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.2% below my intrinsic value, which means if you buy CRH today, you’d be paying a fair price for it. And if you believe that the stock is really worth €36.96, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, CRH’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from CRH?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. CRH's earnings over the next few years are expected to increase by 37%, 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? CRG’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on CRG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 CRH as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for CRH you should know about.

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This article by Simply Wall St is general in nature. 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.
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