Should You Buy Boardwalk Real Estate Investment Trust (TSE:BEI.UN)?
Boardwalk Real Estate Investment Trust (TSX:BEI.UN), a reits company based in Canada, saw a double-digit share price rise of over 10% in the past couple of months on the TSX. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Boardwalk Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Boardwalk Real Estate Investment Trust
Is Boardwalk Real Estate Investment Trust still cheap?
The stock is currently trading at CA$46.25 on the share market, which means it is overvalued by 61% compared to my intrinsic value of CA$28.7. This means that the buying opportunity has probably disappeared for now. Furthermore, Boardwalk Real Estate Investment Trust’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What does the future of Boardwalk Real Estate Investment Trust look like?
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. With revenues expected to grow by a double-digit 11.35% over the next couple of years, the outlook is positive for Boardwalk Real Estate Investment Trust. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in BEI.UN’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe BEI.UN should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on BEI.UN for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for BEI.UN, which means it’s worth diving deeper into other factors 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 Boardwalk Real Estate Investment Trust. You can find everything you need to know about Boardwalk Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Boardwalk Real Estate Investment Trust, 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.
