Should You Buy Colliers International Group Inc (TSE:CIGI) At $72.48?
Colliers International Group Inc (TSX:CIGI), a real estate company based in Canada, received a lot of attention from a substantial price movement on the TSX in the over the last few months, increasing to CA$79.75 at one point, and dropping to the lows of CA$70. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Colliers International Group’s current trading price of CA$72.48 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Colliers International Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Colliers International Group
What’s the opportunity in Colliers International Group?
According to my valuation model, Colliers International Group seems to be fairly priced at around 7.13% below my intrinsic value, which means if you buy Colliers International Group today, you’d be paying a fair price for it. And if you believe that the stock is really worth CA$78.04, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Colliers International Group’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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 Colliers International Group?
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. Colliers International Group’s earnings over the next few years are expected to increase by 99.36%, 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? It seems like the market has already priced in CIGI’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. 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 CIGI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining 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 Colliers International Group. You can find everything you need to know about Colliers International Group in the latest infographic research report. If you are no longer interested in Colliers International Group, 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.
