Should You Think About Buying DigitalBridge Group, Inc. (NYSE:DBRG) Now?

While DigitalBridge Group, Inc. (NYSE:DBRG) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$20.71 and falling to the lows of US$17.09. 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 DigitalBridge Group's current trading price of US$18.42 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 DigitalBridge Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for DigitalBridge Group

Is DigitalBridge Group Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 14.39% above our intrinsic value, which means if you buy DigitalBridge Group today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $16.10, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that DigitalBridge Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from DigitalBridge Group?

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. Though in the case of DigitalBridge Group, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? DBRG seems fairly priced right now, 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 an eye on DBRG 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. Furthermore, 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 DBRG should the price fluctuate below its true value.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with DigitalBridge Group (including 1 which shouldn't be ignored).

If you are no longer interested in DigitalBridge 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.