Yahoo Finance What Is Restaurant Brands International Inc.'s (NYSE:QSR) Share Price Doing?
Restaurant Brands International Inc. (NYSE:QSR) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$82.75 at one point, and dropping to the lows of US$70.53. 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 Restaurant Brands International's current trading price of US$70.73 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Restaurant Brands International’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 Restaurant Brands International
What Is Restaurant Brands International Worth?
The stock seems fairly valued at the moment according to our valuation model. It’s trading around 12.49% above our intrinsic value, which means if you buy Restaurant Brands International today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $62.88, there’s only an insignificant downside when the price falls to its real value. In addition to this, Restaurant Brands International has a low beta, which suggests its share price is less volatile than the wider market.
What does the future of Restaurant Brands International look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 the company's future expectations. With profit expected to grow by 59% over the next couple of years, the future seems bright for Restaurant Brands International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? QSR’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 the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on QSR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, 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.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Our analysis shows 3 warning signs for Restaurant Brands International (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.
If you are no longer interested in Restaurant Brands International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
