Should You Investigate Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB) At Mex$469?

Grupo Aeroportuario del Sureste, S. A. B. de C. V. (BMV:ASURB), might not be a large cap stock, but it saw a significant share price rise of 25% in the past couple of months on the BMV. While good news for shareholders, the company has traded much higher in the past year. 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. But what if there is still an opportunity to buy? 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?

According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. 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 13.77x is currently trading slightly below its industry peers’ ratio of 14.04x, 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 Grupo Aeroportuario del Sureste S. A. B. de C. V should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. 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 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. 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 34%, 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? ASUR B’s optimistic 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 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 advantageous time to buy, given it is trading around industry price multiples. However, the optimistic forecast 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 2 warning signs for Grupo Aeroportuario del Sureste S. A. B. de C. V you should be mindful of and 1 of these can't be ignored.

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.