Yahoo Finance What Does Just Eat Takeaway.com N.V.'s (AMS:TKWY) Share Price Indicate?
Just Eat Takeaway.com N.V. (AMS:TKWY), might not be a large cap stock, but it saw a significant share price rise of 26% in the past couple of months on the ENXTAM. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Just Eat Takeaway.com’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Just Eat Takeaway.com
Is Just Eat Takeaway.com Still Cheap?
According to our valuation model, Just Eat Takeaway.com seems to be fairly priced at around 12% below our intrinsic value, which means if you buy Just Eat Takeaway.com today, you’d be paying a fair price for it. And if you believe the company’s true value is €16.33, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Just Eat Takeaway.com’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.
What kind of growth will Just Eat Takeaway.com generate?
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. Just Eat Takeaway.com's earnings over the next few years are expected to increase by 93%, 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? TKWY’s optimistic future growth appears to have been factored into the current share price, 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 an eye on TKWY, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - Just Eat Takeaway.com has 2 warning signs we think you should be aware of.
If you are no longer interested in Just Eat Takeaway.com, 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.
