What Is Blade Air Mobility, Inc.'s (NASDAQ:BLDE) Share Price Doing?

Blade Air Mobility, Inc. (NASDAQ:BLDE), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the NASDAQCM over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Blade Air Mobility’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Blade Air Mobility

Is Blade Air Mobility Still Cheap?

Good news, investors! Blade Air Mobility is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Blade Air Mobility’s ratio of 11.99x is below its peer average of 20.13x, which indicates the stock is trading at a lower price compared to the Airlines industry. Another thing to keep in mind is that Blade Air Mobility’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its industry peers, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Blade Air Mobility 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. Though in the case of Blade Air Mobility, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although BLDE is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to BLDE, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on BLDE for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Blade Air Mobility as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Blade Air Mobility you should know about.

If you are no longer interested in Blade Air Mobility, 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.