Simply Wall St Reblog Distil plc , which is in the beverage business, and is based in United Kingdom, saw a double-digit share price rise of over 10% in the past couple of months on the AIM. Today I will analyse the most recent data on Distil’s outlook and valuation to see if the opportunity still exists. Distil is still a bargain right now. According to my valuation, the intrinsic value for the stock is £0.035, 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, Distil’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower 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. More 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. In Distil’s case, its revenues over the next few years are expected to grow by 38%, indicating a highly optimistic future ahead. 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 capital structure to consider, which could explain the current undervaluation.
If you’ve been keeping an eye on DIS for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DIS. You can find everything you need to know about Distil in the latest infographic research report . If you are no longer interested in Distil, 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 . 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.
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