Apollo Global Management LLC (NYSE:APO) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $32.33 at one point, and dropping to the lows of $28.1. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Apollo Global Management’s current trading price of $30.47 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Apollo Global Management’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Apollo Global Management
What’s the opportunity in Apollo Global Management?Good news, investors! Apollo Global Management is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $51.96, but it is currently trading at US$30.47 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Apollo Global Management’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What does the future of Apollo Global Management look like?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 revenues expected to grow by a double-digit 22.39% over the next couple of years, the outlook is positive for Apollo Global Management. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since APO 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 APO for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy APO. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Apollo Global Management. You can find everything you need to know about Apollo Global Management in the latest infographic research report. If you are no longer interested in Apollo Global Management, you can use our free platform to see my list of over 50 other stocks with a high growth potential.