At Mex$421, Is Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) Worth Looking At Closely?

While Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the BMV over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Grupo Aeroportuario del Sureste S. A. B. de C. V’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Grupo Aeroportuario del Sureste S. A. B. de C. V

What's The Opportunity In Grupo Aeroportuario del Sureste S. A. B. de C. V?

Grupo Aeroportuario del Sureste S. A. B. de C. V appears to be overvalued by 38% at the moment, based on my discounted cash flow valuation. The stock is currently priced at Mex$421 on the market compared to my intrinsic value of MX$304.19. This means that the opportunity to buy Grupo Aeroportuario del Sureste S. A. B. de C. V at a good price has disappeared! In addition to this, it seems like Grupo Aeroportuario del Sureste S. A. B. de C. V’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Grupo Aeroportuario del Sureste S. A. B. de C. V generate?

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. 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. With profit expected to grow by 26% over the next couple of years, the future seems bright for Grupo Aeroportuario del Sureste S. A. B. de C. V. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in ASUR B’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe ASUR B should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on ASUR B for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for ASUR B, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Grupo Aeroportuario del Sureste S. A. B. de C. V, 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.