Should You Investigate TV18 Broadcast Limited (NSE:TV18BRDCST) At ₹29.70?

TV18 Broadcast Limited (NSE:TV18BRDCST), might not be a large cap stock, but it saw significant share price movement during recent months on the NSEI, rising to highs of ₹35.05 and falling to the lows of ₹27.60. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether TV18 Broadcast's current trading price of ₹29.70 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 TV18 Broadcast’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for TV18 Broadcast

Is TV18 Broadcast still cheap?

The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that TV18 Broadcast’s ratio of 18.64x is trading slightly above its industry peers’ ratio of 13.88x, which means if you buy TV18 Broadcast today, you’d be paying a relatively reasonable price for it. And if you believe that TV18 Broadcast should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. In addition to this, it seems like TV18 Broadcast’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s trading around the price multiples of other industry peers. This is because the stock is less volatile than the wider market given its low beta.

What does the future of TV18 Broadcast look like?

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. Though in the case of TV18 Broadcast, it is expected to deliver a relatively unexciting earnings growth of 9.3%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for TV18 Broadcast, at least in the near term.

What this means for you:

Are you a shareholder? TV18BRDCST’s future growth appears to have been factored into the current share price, with shares trading around industry price multiples. 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 TV18BRDCST? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you’ve been keeping an eye on TV18BRDCST, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Diving deeper into the forecasts for TV18 Broadcast mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in TV18 Broadcast, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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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