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Let's talk about the popular Trip.com Group Limited (NASDAQ:TCOM). The company's shares saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$41.85 and falling to the lows of US$28.86. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Trip.com Group's current trading price of US$28.86 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Trip.com Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Trip.com Group worth?
Good news, investors! Trip.com Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is $45.21, but it is currently trading at US$28.86 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Trip.com Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Trip.com Group?
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. Trip.com Group's earnings over the next few years are expected to increase by 82%, 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? Since TCOM 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 TCOM for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TCOM. 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 investment decision.
If you'd like to know more about Trip.com Group as a business, it's important to be aware of any risks it's facing. For example, Trip.com Group has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
If you are no longer interested in Trip.com Group, 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.
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