Intelsat SA (NYSE:I), a telecom company based in Luxembourg, saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Intelsat’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Intelsat
What’s the opportunity in Intelsat?Great news for investors – Intelsat is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $42.29, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Intelsat’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from Intelsat?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 26.96% over the next couple of years, the future seems bright for Intelsat. 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 I 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on I 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 I. 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 buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Intelsat. You can find everything you need to know about Intelsat in the latest infographic research report. If you are no longer interested in Intelsat, you can use our free platform to see my list of over 50 other stocks with a high growth potential.