What Is John Wiley & Sons, Inc.'s (NYSE:WLY) Share Price Doing?
John Wiley & Sons, Inc. (NYSE:WLY), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today we will analyse the most recent data on John Wiley & Sons’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for John Wiley & Sons
Is John Wiley & Sons Still Cheap?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 5.7% below our intrinsic value, which means if you buy John Wiley & Sons today, you’d be paying a fair price for it. And if you believe that the stock is really worth $35.66, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, John Wiley & Sons’s share price may be more stable over time (relative to the market), as indicated by its low beta.
What does the future of John Wiley & Sons 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. However, with an expected decline of -8.8% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for John Wiley & Sons. This certainty tips the risk-return scale towards higher risk.
What This Means For You
Are you a shareholder? Currently, WLY appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on WLY for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on WLY should the price fluctuate below its true value.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of John Wiley & Sons.
If you are no longer interested in John Wiley & Sons, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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.
