When Should You Buy Beasley Broadcast Group, Inc. (NASDAQ:BBGI)?

Beasley Broadcast Group, Inc. (NASDAQ:BBGI), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGM, rising to highs of US$1.99 and falling to the lows of US$1.45. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Beasley Broadcast Group's current trading price of US$1.45 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Beasley Broadcast Group’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 Beasley Broadcast Group

What is Beasley Broadcast Group worth?

Great news for investors – Beasley Broadcast Group is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 7.87x is currently well-below the industry average of 16.73x, meaning that it is trading at a cheaper price relative to its peers. However, given that Beasley Broadcast Group’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Beasley Broadcast Group look like?

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. With profit expected to grow by 22% over the next couple of years, the future seems bright for Beasley Broadcast 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? Since BBGI is currently below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive 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 price multiple.

Are you a potential investor? If you’ve been keeping an eye on BBGI for a while, now might be the time to enter the stock. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BBGI. 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 investment decision.

If you'd like to know more about Beasley Broadcast Group as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 4 warning signs for Beasley Broadcast Group you should be mindful of and 1 of them is a bit unpleasant.

If you are no longer interested in Beasley Broadcast 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.