Empire State Realty Trust Inc (NYSE:ESRT), a reits company based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $18.38 at one point, and dropping to the lows of $16.31. 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 Empire State Realty Trust’s current trading price of $16.98 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 Empire State Realty Trust’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 Empire State Realty Trust
What is Empire State Realty Trust worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 14% above my intrinsic value, which means if you buy Empire State Realty Trust today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $14.89, there’s only an insignificant downside when the price falls to its real value. In addition to this, it seems like Empire State Realty Trust’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Empire State Realty Trust look like?
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. With profit expected to grow by 67.72% over the next year, the near-term future seems bright for Empire State Realty Trust. 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 already priced in ESRT’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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on ESRT, 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 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 Empire State Realty Trust. You can find everything you need to know about Empire State Realty Trust in the latest infographic research report. If you are no longer interested in Empire State Realty 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.