Is Now An Opportune Moment To Examine Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB)?

While Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the BMV. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Grupo Aeroportuario del Sureste S. A. B. de C. V’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

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

What Is Grupo Aeroportuario del Sureste S. A. B. de C. V Worth?

The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 15.74x is currently trading slightly below its industry peers’ ratio of 15.74x, which means if you buy Grupo Aeroportuario del Sureste S. A. B. de C. V today, you’d be paying a reasonable price for it. And if you believe that Grupo Aeroportuario del Sureste S. A. B. de C. V should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers. Furthermore, it seems like Grupo Aeroportuario del Sureste S. A. B. de C. V’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s priced similarly to industry peers. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Grupo Aeroportuario del Sureste S. A. B. de C. V 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. Grupo Aeroportuario del Sureste S. A. B. de C. V's earnings over the next few years are expected to increase by 58%, 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? It seems like the market has already priced in ASUR B’s positive outlook, 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 ASUR B? 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 ASUR B, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for ASUR B, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Grupo Aeroportuario del Sureste S. A. B. de C. V.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com