Arbor Realty Trust Inc (NYSE:ABR), a mortgage reits company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Arbor Realty Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Arbor Realty Trust
Is Arbor Realty Trust still cheap?Great news for investors – Arbor Realty Trust is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $15.15, but it is currently trading at US$8.77 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Arbor Realty Trust’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What kind of growth will Arbor Realty Trust 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. Arbor Realty Trust’s earnings over the next few years are expected to increase by 43.54%, 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? Since ABR is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ABR for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ABR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Arbor Realty Trust. You can find everything you need to know about Arbor Realty Trust in the latest infographic research report. If you are no longer interested in Arbor Realty Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.