Have Investors Already Priced In Marriott Vacations Worldwide Corporation’s (NYSE:VAC) Growth?
Marriott Vacations Worldwide Corporation (NYSE:VAC), a hospitality company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the mid-cap 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 examine Marriott Vacations Worldwide’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. View our latest analysis for Marriott Vacations Worldwide
What is Marriott Vacations Worldwide worth?
According to my valuation model, the stock is currently overvalued by about 65%, trading at $137.05 compared to my intrinsic value of $82.85. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Since Marriott Vacations Worldwide’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 Marriott Vacations Worldwide?
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. However, with a relatively muted profit growth of 9.74% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Marriott Vacations Worldwide, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in Marriott Vacations Worldwide’s future outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe Marriott Vacations Worldwide 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 Marriott Vacations Worldwide 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 positive outlook 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 Marriott Vacations Worldwide. You can find everything you need to know about Marriott Vacations Worldwide in the latest infographic research report. If you are no longer interested in Marriott Vacations Worldwide, 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.
