Yahoo Finance Is There Now An Opportunity In Invesco Mortgage Capital Inc. (NYSE:IVR)?
Invesco Mortgage Capital Inc. (NYSE:IVR), which is in the mortgage reits business, and is based in United States, maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of $15.35 to $16.62. However, does this price actually reflect the true value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Invesco Mortgage Capital’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 Invesco Mortgage Capital
What is Invesco Mortgage Capital worth?
Great news for investors – Invesco Mortgage Capital is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $26.07, but it is currently trading at US$15.60 on the share market, meaning that there is still an opportunity to buy now. Invesco Mortgage Capital’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of returns can we expect from Invesco Mortgage Capital in the future?
What kind of returns can we expect from Invesco Mortgage Capital in the future? It’s one thing to get a stock at a low price, but the quality of the company is even more important, as its stock may be cheap or expensive for a reason. We can determine the quality of a stock many ways; one way is to look at how much return it generates relative to the money we’ve invested in the stock. Invesco Mortgage Capital is expected to return 11% of your investment in the next couple of years if you buy the stock today. This is a relatively good return on your investment which builds up the case for owning the stock.
What this means for you:
Are you a shareholder? Since IVR is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive 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 IVR for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IVR. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Invesco Mortgage Capital. You can find everything you need to know about Invesco Mortgage Capital in the latest infographic research report. If you are no longer interested in Invesco Mortgage Capital, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
