Yahoo Finance What Is West Fraser Timber Co Ltd’s (TSX:WFT) Share Price Doing?
West Fraser Timber Co Ltd (TSX:WFT), a materials company based in Canada, See our latest analysis for WFT
What is WFT worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19% below my intrinsic value, which means if you buy WFT today, you’d be paying a reasonable price for it. And if you believe that WFT is really worth $79.1, then there’s not much of an upside to gain from mispricing. Furthermore, it seems like WFT’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because WFT’s stock is less volatile than the wider market given its low beta.
Can we expect growth from WFT?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at WFT future expectations. However, with a relatively muted profit growth of 2.47% expected over the next year, growth doesn’t seem like a key driver for a buy decision for WFT, at least in the short term.
What this means for you:
Are you a shareholder? WFT’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at WFT? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on WFT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for WFT, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on West Fraser Timber. You can find everything you need to know about WFT in the latest infographic research report. If you are no longer interested in West Fraser Timber, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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.
