Asbury Automotive Group, Inc. (NYSE:ABG), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$199 at one point, and dropping to the lows of US$148. 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 Asbury Automotive Group's current trading price of US$148 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Asbury Automotive Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Asbury Automotive Group

Is Asbury Automotive Group Still Cheap?

Great news for investors – Asbury Automotive Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $230.16, but it is currently trading at US$148 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Asbury Automotive Group'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 Asbury Automotive Group generate?

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. 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. Though in the case of Asbury Automotive Group, it is expected to deliver a relatively unexciting earnings growth of 6.0%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for Asbury Automotive Group, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since ABG is currently undervalued, it may be a great time to increase your holdings in the stock. 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 ABG for a while, now might be the time to enter the stock. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ABG. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you'd like to know more about Asbury Automotive Group as a business, it's important to be aware of any risks it's facing. For example, we've found that Asbury Automotive Group has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Asbury Automotive Group, 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.