Is Now The Time To Look At Buying Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (BMV:GAPB)?

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (BMV:GAPB), is not the largest company out there, but it saw a significant share price rise of 33% in the past couple of months on the BMV. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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, could the stock still be trading at a relatively cheap price? Let’s take a look at Grupo Aeroportuario del Pacífico. de’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Grupo Aeroportuario del Pacífico. de

Is Grupo Aeroportuario del Pacífico. de Still Cheap?

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 14.48x is currently trading slightly below its industry peers’ ratio of 14.49x, which means if you buy Grupo Aeroportuario del Pacífico. de today, you’d be paying a reasonable price for it. And if you believe Grupo Aeroportuario del Pacífico. de 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. Is there another opportunity to buy low in the future? Since Grupo Aeroportuario del Pacífico. de’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Grupo Aeroportuario del Pacífico. de generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by a double-digit 19% over the next couple of years, the outlook is positive for Grupo Aeroportuario del Pacífico. de. 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? GAP 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 track record of its management team. Have these factors changed since the last time you looked at GAP B? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on GAP 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 GAP B, which means it’s worth further examining 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. At Simply Wall St, we found 2 warning signs for Grupo Aeroportuario del Pacífico. de and we think they deserve your attention.

If you are no longer interested in Grupo Aeroportuario del Pacífico. 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.