Yahoo Finance Should You Investigate Sinclair Broadcast Group Inc (NASDAQ:SBGI) At US$28.35?
Sinclair Broadcast Group Inc (NASDAQ:SBGI), which is in the media business, and is based in United States, saw a decent share price growth in the teens level on the NasdaqGS over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Sinclair Broadcast Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Sinclair Broadcast Group
What’s the opportunity in Sinclair Broadcast Group?
Great news for investors – Sinclair Broadcast Group is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $39.13, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Sinclair Broadcast 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 does the future of Sinclair Broadcast Group 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. 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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Sinclair Broadcast Group, at least in the near future.
What this means for you:
Are you a shareholder? Although SBGI is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to SBGI, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on SBGI for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sinclair Broadcast Group. You can find everything you need to know about Sinclair Broadcast Group in the latest infographic research report. If you are no longer interested in Sinclair Broadcast Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
