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Is It Too Late To Consider Buying Fuller, Smith & Turner P.L.C. (LON:FSTA)?

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·3 min read
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Fuller, Smith & Turner P.L.C. (LON:FSTA), is not the largest company out there, but it received a lot of attention from a substantial price increase on the LSE over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Fuller Smith & Turner’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Fuller Smith & Turner

What is Fuller Smith & Turner worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.00% above my intrinsic value, which means if you buy Fuller Smith & Turner today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £7.43, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Fuller Smith & Turner’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Fuller Smith & Turner?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. In the upcoming year, Fuller Smith & Turner's earnings are expected to increase by 63%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in FSTA’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on FSTA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Fuller Smith & Turner as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Fuller Smith & Turner.

If you are no longer interested in Fuller Smith & Turner, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.