Yahoo Finance Valuetronics Holdings Limited (SGX:BN2): Immense Growth Potential?
The most recent earnings announcement Valuetronics Holdings Limited’s (SGX:BN2) released in March 2018 confirmed that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 32.88%. Below, I’ve presented key growth figures on how market analysts predict Valuetronics Holdings’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Valuetronics Holdings
Analysts’ outlook for the coming year seems rather muted, with earnings rising by a single digit 5.00%. The growth outlook in the following year seems much more positive with rates arriving at double digit 16.84% compared to today’s earnings, and finally hitting HK$258.82M by 2021.
Even though it’s useful to be aware of the rate of growth each year relative to today’s figure, it may be more beneficial gauging the rate at which the business is moving on average every year. The benefit of this method is that we can get a bigger picture of the direction of Valuetronics Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 8.13%. This means, we can assume Valuetronics Holdings will grow its earnings by 8.13% every year for the next few years.
Next Steps:
For Valuetronics Holdings, I’ve put together three fundamental aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is BN2 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BN2 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BN2? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass 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.
