Is El Puerto de Liverpool, S.A.B. de C.V. (BMV:LIVEPOLC-1) Potentially Undervalued?

El Puerto de Liverpool, S.A.B. de C.V. (BMV:LIVEPOLC-1), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the BMV over the last few months, increasing to Mex$110 at one point, and dropping to the lows of Mex$87.01. 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 El Puerto de Liverpool. de's current trading price of Mex$90.33 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at El Puerto de Liverpool. de’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for El Puerto de Liverpool. de

What's the opportunity in El Puerto de Liverpool. de?

Good news, investors! El Puerto de Liverpool. de is still a bargain right now. My valuation model shows that the intrinsic value for the stock is MX$146.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that El Puerto de Liverpool. de’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will El Puerto de Liverpool. de generate?

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. However, with a relatively muted profit growth of 5.1% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for El Puerto de Liverpool. de, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since LIVEPOL C-1 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LIVEPOL C-1 for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LIVEPOL C-1. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Diving deeper into the forecasts for El Puerto de Liverpool. de mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in El Puerto de Liverpool. de, 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. 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. Simply Wall St has no position in any stocks mentioned.