Reassessing ManpowerGroup (MAN) Valuation After a Steep Decline and Recent Share Price Rebound
ManpowerGroup (MAN) has been quietly grinding through a tough stretch, and the stock’s recent bounce offers a chance to reassess where the business stands after years of muted returns for shareholders.
See our latest analysis for ManpowerGroup.
After a brutal slide that leaves the year to date share price return down about 48 percent and the 1 year total shareholder return near minus 46 percent, the recent 1 month share price rebound suggests sentiment is stabilising rather than decisively turning.
If you are rethinking where to deploy capital next, this could be a good moment to compare ManpowerGroup with fast growing stocks with high insider ownership.
With shares trading well below analyst targets, yet profits still under pressure, investors now face a key question: is ManpowerGroup an undervalued turnaround story, or is the market already pricing in modest growth ahead?
Most Popular Narrative Narrative: 26.8% Undervalued
Compared to ManpowerGroup's last close at $29.51, the most followed narrative sees fair value closer to $40, implying meaningful upside if its assumptions play out.
Analysts expect the number of shares outstanding to decline by 1.37% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 8.8%, as per the Simply Wall St company report.
Curious how modest revenue growth, improving margins, and shrinking share count combine into a higher future earnings base and low multiple? The narrative connects these moving parts into one cohesive valuation story, but the real intrigue is how sensitive that upside is to even small changes in those assumptions.
Result: Fair Value of $40.33 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative could unravel if AI driven automation reduces demand for traditional staffing, or if Northern Europe’s structural challenges continue to weigh on margins.
Find out about the key risks to this ManpowerGroup narrative.
Build Your Own ManpowerGroup Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a personalised view in under three minutes: Do it your way.
A great starting point for your ManpowerGroup research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
Looking for more investment ideas?
Use the Simply Wall St screener now to pinpoint fresh opportunities, sharpen your watchlist, and avoid missing the next wave of market leading stocks.
- Capture early stage potential by scanning these 3639 penny stocks with strong financials that already show strong financial underpinnings rather than pure speculation.
- Ride the structural shift toward automation and data intelligence by targeting these 26 AI penny stocks positioned at the heart of the AI transformation.
- Identify quality at compelling prices using these 910 undervalued stocks based on cash flows that may be mispriced based on their future cash flow potential.
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.
Valuation is complex, but we're here to simplify it.
Discover if ManpowerGroup might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com