Planet Fitness, Inc. (NYSE:PLNT) may not have the largest market cap, but it saw a double-digit share price increase of over 10% over the past two months on the NYSE. Recent stock price gains have brought the company near yearly highs. With many analysts covering the mid-cap stock, one might expect price-sensitive announcements to be already factored into the stock price. But could the stock still be trading at a relatively cheap price? Let’s take a look at Planet Fitness’s outlook and value based on the latest financial data to see if the opportunity still exists. Sho.
Check out our latest analysis for Planet Fitness.
Is Planet Fitness still cheap?
Our valuation model suggests that Planet Fitness’s price is approximately 19% below our intrinsic value. So if you buy Planet Fitness now, you’ll be paying a fair price. And if you believe the company’s true value is $99.22, that means there isn’t much room for the stock to rise beyond what the stock is currently trading at. So, will there be any chance to buy at a lower price in the future? Given that Planet Fitness’s stock price is quite volatile (i.e., it has higher price fluctuations relative to the rest of the market), this could mean the price could fall, giving you an opportunity to buy later. may be given. This is based on its high beta value, which is a good indicator of stock price volatility.
Can we expect growth for Planet Fitness?
NYSE:PLNT Earnings and Revenue Growth September 30, 2024
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Value investors would argue that it’s the intrinsic value relative to the price that matters most, but a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to grow by 31% over the next few years, the future looks bright for Planet Fitness. It appears that cash flow is expected to increase, which should lead to an increase in the stock’s valuation.
what this means for you
Are you a shareholder? The market appears to have already priced in PLNT’s positive outlook, with the stock trading around its fair value. However, there are other important factors that we did not consider today, such as the track record of the management team. Have these factors changed since the last time you looked at the stock price? Do you have enough confidence to buy if the price moves below its true value?
Are you a potential investor? If you have been keeping an eye on PLNT, now may not be the most advantageous time to buy, given that PLNT is trading around its fair value. No. However, the optimistic outlook is encouraging for the company, and means it’s worth further considering other factors, such as the strength of its balance sheet, in order to take advantage of the next share price decline.
When analyzing a stock, keep in mind that it’s worth being aware of the risks involved. For example, Planet Fitness has 2 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
