At AU$1.27, Is It Time To Put HT&E Limited (ASX:HT1) On Your Watch List?
HT&E Limited (ASX:HT1), which is in the media business, and is based in Australia, received a lot of attention from a substantial price increase on the ASX over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on HT&E’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for HT&E
Is HT&E still cheap?
According to my valuation model, HT&E seems to be fairly priced at around 8.6% below my intrinsic value, which means if you buy HT&E today, you’d be paying a fair price for it. And if you believe the company’s true value is A$1.39, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, HT&E’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What kind of growth will HT&E generate?
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. However, with a relatively muted revenue growth of 1.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for HT&E, at least in the short term.
What this means for you:
Are you a shareholder? HT1’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on HT1, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on HT&E. You can find everything you need to know about HT&E in the latest infographic research report. If you are no longer interested in HT&E, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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.
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. Thank you for reading.
