U.S. Markets closed

Is Now An Opportune Moment To Examine Colony Capital, Inc. (NYSE:CLNY)?

Simply Wall St

Colony Capital, Inc. (NYSE:CLNY), which is in the reits business, and is based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. As a US$2.8b market cap stock, it seems odd Colony Capital is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Today I will analyse the most recent data on Colony Capital’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Colony Capital

What's the opportunity in Colony Capital?

Good news, investors! Colony Capital is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $10.87, but it is currently trading at US$5.48 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Colony Capital’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.

What kind of growth will Colony Capital generate?

NYSE:CLNY Past and Future Earnings, August 8th 2019

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. With profit expected to grow by 70% over the next couple of years, the future seems bright for Colony Capital. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since CLNY is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 CLNY for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CLNY. But before you make any investment decisions, consider other factors such as the track record of its management team, 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 Colony Capital. You can find everything you need to know about Colony Capital in the latest infographic research report. If you are no longer interested in Colony Capital, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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.