At $16, Is It Time To Buy Graphic Packaging Holding Company (NYSE:GPK)?

Graphic Packaging Holding Company (NYSE:GPK), a packaging company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $16.68 and falling to the lows of $14.86. 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 Graphic Packaging Holding’s current trading price of $16 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Graphic Packaging Holding’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Graphic Packaging Holding

Is Graphic Packaging Holding still cheap?

According to my valuation model, Graphic Packaging Holding seems to be fairly priced at around 1% above my intrinsic value, which means if you buy Graphic Packaging Holding today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $15.87, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Graphic Packaging Holding’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Graphic Packaging Holding look like?

NYSE:GPK Future Profit Feb 6th 18
NYSE:GPK Future Profit Feb 6th 18
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 more than double over the next couple of years, the future seems bright for Graphic Packaging Holding. 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? It seems like the market has already priced in Graphic Packaging Holding’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 track record of its management team. 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 Graphic Packaging Holding, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, 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.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Graphic Packaging Holding. You can find everything you need to know about Graphic Packaging Holding in the latest infographic research report. If you are no longer interested in Graphic Packaging Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.