What Should Investors Know About Telenet Group Holding NV’s (EBR:TNET) Future?
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Telenet Group Holding NV’s (EBR:TNET) announced its latest earnings update in December 2018, which confirmed that the company experienced a substantial tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts predict Telenet Group Holding’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Telenet Group Holding
Analysts’ outlook for this coming year seems buoyant, with earnings growing by a robust 23%. This growth seems to continue into the following year with rates reaching double digit 38% compared to today’s earnings, and finally hitting €365m by 2022.
Even though it’s helpful to understand the growth rate year by year relative to today’s figure, it may be more beneficial determining the rate at which the earnings are moving on average every year. The advantage of this method is that we can get a bigger picture of the direction of Telenet Group Holding’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 12%. This means that, we can anticipate Telenet Group Holding will grow its earnings by 12% every year for the next couple of years.
Next Steps:
For Telenet Group Holding, I’ve put together three key factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is TNET worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TNET is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TNET? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
