Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6516
    -0.0020 (-0.30%)
     
  • OIL

    82.38
    +1.03 (+1.27%)
     
  • GOLD

    2,206.60
    +16.00 (+0.73%)
     
  • Bitcoin AUD

    108,619.65
    +1,150.80 (+1.07%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6023
    -0.0007 (-0.12%)
     
  • AUD/NZD

    1.0896
    +0.0016 (+0.15%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,298.68
    +17.84 (+0.10%)
     
  • FTSE

    7,967.77
    +35.79 (+0.45%)
     
  • Dow Jones

    39,761.59
    +1.51 (+0.00%)
     
  • DAX

    18,495.88
    +18.79 (+0.10%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     

Is Now The Time To Look At Buying PG&E Corporation (NYSE:PCG)?

Today we're going to take a look at the well-established PG&E Corporation (NYSE:PCG). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$17.45 and falling to the lows of US$15.28. 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 PG&E's current trading price of US$16.41 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at PG&E’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for PG&E

What Is PG&E Worth?

Good news, investors! PG&E is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $21.06, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because PG&E’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from PG&E?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. PG&E's earnings over the next few years are expected to increase by 61%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since PCG is currently undervalued, 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 undervaluation.

ADVERTISEMENT

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

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. When we did our research, we found 2 warning signs for PG&E (1 is a bit unpleasant!) that we believe deserve your full attention.

If you are no longer interested in PG&E, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here