Today we have a well established Restaurant Brands International Inc. Take a look at (NYSE: QSR). Shares of the company have seen significant share price movement on the NYSE in recent months, rising to a high of US $ 61.36 and a low of US $ 46.94. Certain stock price moves may give investors a better chance of entering the stock and buying at a lower price. The question to be answered is whether the current trading price of Restaurant Brands International reflects the true value of the large cap of US $ 47.97. Or is it currently undervalued, providing us with an opportunity to buy? Take a look at Restaurant Brands International’s outlook and value based on the latest financial data to see if there are any catalysts for price change.
See our latest analysis for Restaurant Brands International
What’s the opportunity at Restaurant Brands International?
Good news, investors! Restaurant Brands International is still a bargain. In my estimation, the intrinsic value of the stock is $ 67.09, but it is currently trading at US $ 47.97 per share, meaning there is still room to buy. However, Restaurant Brands International’s share is fairly volatile (ie, its price movements are enhanced relative to the rest of the market), which means it may be cheaper, giving us another opportunity to buy in the future. This is based on its high beta, which is a good indicator of share price volatility.
What does the future hold for Restaurant Brands International?
Investors may want to see growth in their portfolio and consider the future of the company before buying its shares. Buying a good company with a strong outlook on the cheap is always a good investment, so take a look at the company’s future prospects as well. Restaurant Brands International’s earnings are expected to increase by 77% over the next few years, indicating a more promising future. This leads to more robust cash flows, feeding higher share value.
What does this mean for you:
Are you a shareholder? Since QSR is currently undervalued, this is a good time to store most of your holdings in stock. From a positive standpoint on the horizon, this growth seems to have yet to be fully factored into the share price. However, there are other factors, such as financial health, to consider, which currently explain the under-valuation.
Are you a potential investor? If you’ve been keeping an eye on QSR for a while, now may be the time to enter the stock. Its floating future outlook is not fully reflected in the current share price, which means it is never too late to buy QSR. But before you make any investment decisions, consider other factors such as the track record of its management team to make a better purchase.
So while earnings quality is important, it is equally important to consider the risks faced by Restaurant Brands International at this time. When we did our research, we found out 3 Warning Signs for Restaurant Brands International (Don’t ignore the 1!) We believe you deserve your full attention.
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This article by Simply Wall St. is general. We provide commentary based on historical data and analysts’ predictions and our articles are not intended for financial advice. It does not recommend buying or selling any stock and does not take into account your objectives or your financial situation. We aim to bring you long term focused analysis driven by basic data. Note that our analysis does not account for the latest price-sensitive company publications or qualitative material. Simply Wall St. has no place in any of the shares quoted.