Since Prestige Estates Projects Limited (NSE:PRESTIGE) released its earnings in December 2018, analysts seem fairly confident, with earnings expected to grow by 12% in the upcoming year compared with the past 5-year average growth rate of 4.1%. By 2020, we can expect Prestige Estates Projects’s bottom line to reach ₹4.2b, a jump from the current trailing-twelve-month of ₹3.7b. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Prestige Estates Projects in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
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How is Prestige Estates Projects going to perform in the near future?
The longer term view from the 13 analysts covering PRESTIGE is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of PRESTIGE’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of ₹3.7b and the final forecast of ₹6.4b by 2022, the annual rate of growth for PRESTIGE’s earnings is 20%. EPS reaches ₹17.59 in the final year of forecast compared to the current ₹9.9 EPS today. In 2022, PRESTIGE’s profit margin will have expanded from 6.8% to 9.7%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Prestige Estates Projects, there are three key aspects you should look at:
- 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 Prestige Estates Projects 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 Prestige Estates Projects is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Prestige Estates Projects? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.