When Should You Buy Flight Centre Travel Group Limited (ASX:FLT)?

While Flight Centre Travel Group Limited (ASX:FLT) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to AU$22.54 at one point, and dropping to the lows of AU$15.53. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Flight Centre Travel Group’s current trading price of AU$16.36 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Flight Centre Travel Group’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 Flight Centre Travel Group

Good news, investors! Flight Centre Travel Group is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is A$25.86, but it is currently trading at AU$16.36 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Flight Centre Travel 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.

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to more than double over the next couple of years, the future seems bright for Flight Centre Travel Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

Are you a shareholder? Since FLT is currently undervalued, it may be a great time to accumulate more of 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 FLT for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FLT. 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.

Story Continues