• Tue. Sep 27th, 2022

Why Dr Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) Might Be Worth Watching

ByMadeleine J. Pierce

Aug 8, 2022

Let’s talk about the popular Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL: 4013). The company’s shares have seen a double-digit share price rise of more than 10% in the past two months on the SASE. With many analysts covering large-cap stocks, we can expect any price-sensitive announcements to have already factored into the stock price. However, could the stock still trade at a relatively cheap price? Let’s take a closer look at Dr. Sulaiman Al Habib Medical Services Group’s valuation and outlook to determine if there is still an opportunity to trade.

Check out our latest analysis for Dr. Sulaiman Al Habib Medical Services Group

What is Dr. Sulaiman Al Habib’s medical services group worth?

According to my valuation model, Dr. Sulaiman Al Habib’s medical services group seems to have a fair price of about 16.37% above my intrinsic value, which means that if you buy the medical services group from Dr Sulaiman Al Habib today you will pay a relatively high price. reasonable price for it. And if you think the stock is really worth SAR 187.34, there is only insignificant downside when the price drops to its true value. On top of that, Dr. Sulaiman Al Habib Medical Services Group has a low beta, which suggests its stock price is less volatile than the broader market.

What kind of growth will Dr. Sulaiman Al Habib Medical Services Group generate?

SASE:4013 Earnings and Revenue Growth August 8, 2022

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Although value investors argue that it is intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to increase by 28% over the next two years, the future looks bright for Dr. Sulaiman Al Habib Medical Services Group. It seems that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What this means for you

Are you a shareholder? The optimistic future growth of 4013 appears to have been priced into the current stock price, with the stock trading around its fair value. However, there are also other important factors that we have not 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 be confident enough to invest in the business if the price drops below its fair value?

Are you a potential investor? If you’ve been keeping an eye on 4013, now might not be the best time to buy, given that it’s trading around its fair value. However, the positive outlook is encouraging for the company, which means that it is worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be very helpful to consider what analysts expect of Dr. Sulaiman Al Habib Medical Services Group from their most recent forecasts. Luckily, you can check analyst forecasts by clicking here.

If you are no longer interested in Dr. Sulaiman Al Habib Medical Services Group, you can use our free platform to view our list of over 50 other stocks with high growth potential.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.