Yahoo Finance When Should You Buy Mirvac Group (ASX:MGR)?
Mirvac Group (ASX:MGR), a reits company based in Australia, saw its share price hover around a small range of A$2.14 to A$2.35 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Mirvac Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View out our latest analysis for Mirvac Group
What’s the opportunity in Mirvac Group?
According to my valuation model, Mirvac Group seems to be fairly priced at around 10.75% below my intrinsic value, which means if you buy Mirvac Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth A$2.51, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Mirvac Group’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
What kind of growth will Mirvac Group generate?
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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Mirvac Group, at least in the near future.
What this means for you:
Are you a shareholder? MGR seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on MGR for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on MGR should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mirvac Group. You can find everything you need to know about Mirvac Group in the latest infographic research report. If you are no longer interested in Mirvac Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
