Cushman & Wakefield plc (NYSE:CWK), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NYSE 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? Today I will analyse the most recent data on Cushman & Wakefield's outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for Cushman & Wakefield
What Is Cushman & Wakefield Worth?
Great news for investors – Cushman & Wakefield is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $11.38, but it is currently trading at US$7.37 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 Cushman & Wakefield'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.
What does the future of Cushman & Wakefield look like?
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. Cushman & Wakefield's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? Since CWK 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 CWK for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy CWK. 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 buy.
It can be quite valuable to consider what analysts expect for Cushman & Wakefield from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.
If you are no longer interested in Cushman & Wakefield, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.