Is It Too Late To Consider Buying First Watch Restaurant Group, Inc. (NASDAQ:FWRG)?

First Watch Restaurant Group, Inc. (NASDAQ:FWRG), is not the largest company out there, but it saw a decent share price growth of 17% on the NASDAQGS over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the 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 First Watch Restaurant Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for First Watch Restaurant Group

What's The Opportunity In First Watch Restaurant Group?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.10% above our intrinsic value, which means if you buy First Watch Restaurant Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $15.02, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, First Watch Restaurant Group’s low beta implies that the stock is less volatile than the wider market.

What does the future of First Watch Restaurant Group 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. 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 74% over the next couple of years, the future seems bright for First Watch Restaurant Group. 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 already priced in FWRG’s positive outlook, with shares trading around its fair value. 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 the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on FWRG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, 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.

It can be quite valuable to consider what analysts expect for First Watch Restaurant Group from their most recent forecasts. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in First Watch Restaurant Group, 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.