What Is Boston Pizza Royalties Income Fund's (TSE:BPF.UN) Share Price Doing?
Boston Pizza Royalties Income Fund (TSE:BPF.UN), might not be a large cap stock, but it saw significant share price movement during recent months on the TSX, rising to highs of CA$16.69 and falling to the lows of CA$14.92. 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 Boston Pizza Royalties Income Fund's current trading price of CA$15.33 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 Boston Pizza Royalties Income Fund’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 Boston Pizza Royalties Income Fund
What Is Boston Pizza Royalties Income Fund Worth?
Great news for investors – Boston Pizza Royalties Income Fund is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$24.34, 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 Boston Pizza Royalties Income Fund’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.
What kind of growth will Boston Pizza Royalties Income Fund generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Though in the case of Boston Pizza Royalties Income Fund, it is expected to deliver a negative earnings growth of -3.2%, 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 BPF.UN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to BPF.UN, 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 BPF.UN for some time, but hesitant on making the leap, I recommend you research further 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.
So while earnings quality is important, it's equally important to consider the risks facing Boston Pizza Royalties Income Fund at this point in time. When we did our research, we found 4 warning signs for Boston Pizza Royalties Income Fund (1 is concerning!) that we believe deserve your full attention.
If you are no longer interested in Boston Pizza Royalties Income Fund, 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.
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