Yahoo Finance Is Now An Opportune Moment To Examine Apollo Tourism & Leisure Ltd (ASX:ATL)?
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Apollo Tourism & Leisure Ltd (ASX:ATL), which is in the auto business, and is based in Australia, received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to A$1.01 at one point, and dropping to the lows of A$0.35. 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 Apollo Tourism & Leisure's current trading price of A$0.36 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 Apollo Tourism & Leisure’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 Apollo Tourism & Leisure
What is Apollo Tourism & Leisure worth?
Great news for investors – Apollo Tourism & Leisure is still trading at a fairly cheap price. 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 Apollo Tourism & Leisure’s ratio of 3.65x is below its peer average of 10.68x, which suggests the stock is undervalued compared to the Auto industry. What’s more interesting is that, Apollo Tourism & Leisure’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Apollo Tourism & Leisure?
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 Apollo Tourism & Leisure, it is expected to deliver a negative earnings growth of -7.7%, 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 ATL is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to ATL, 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 ATL for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Apollo Tourism & Leisure. You can find everything you need to know about Apollo Tourism & Leisure in the latest infographic research report. If you are no longer interested in Apollo Tourism & Leisure, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
