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What Does YouGov plc's (LON:YOU) Share Price Indicate?

While YouGov plc (LON:YOU) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the AIM. 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? Let’s take a look at YouGov’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for YouGov

What's The Opportunity In YouGov?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.66% above my intrinsic value, which means if you buy YouGov today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is £10.03, there’s only an insignificant downside when the price falls to its real value. Furthermore, YouGov’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will YouGov generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. YouGov's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger 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 YOU’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 YOU, now may not be the most advantageous 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.

If you'd like to know more about YouGov as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for YouGov and you'll want to know about this.

If you are no longer interested in YouGov, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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