Let’s talk about the popular International Consolidated Airlines Group SA. (LSE:IAG). The company’s shares saw a double-digit share price rise of over 10% in the past couple of months on the LSE. With many analysts covering the large-cap 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? Today I will analyse the most recent data on International Consolidated Airlines Group’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for International Consolidated Airlines Group
Is International Consolidated Airlines Group still cheap?
Good news, investors! International Consolidated Airlines Group is still a bargain right now. My valuation model shows that the intrinsic value for the stock is £15.46, but it is currently trading at UK£6.95 on the share market, meaning that there is still an opportunity to buy now. International Consolidated Airlines Group’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.
Can we expect growth from International Consolidated Airlines Group?
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. Though in the case of International Consolidated Airlines Group, it is expected to deliver a relatively unexciting earnings growth of 7.61%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since IAG is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on IAG for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IAG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on International Consolidated Airlines Group. You can find everything you need to know about International Consolidated Airlines Group in the latest infographic research report. If you are no longer interested in International Consolidated Airlines 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.