Is Sabre Corporation (NASDAQ:SABR) Potentially Undervalued?

Sabre Corporation (NASDAQ:SABR), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy?

Let’s take a look at Sabre’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Sabre

Is Sabre Still Cheap?

Good news, investors! Sabre is still a bargain right now.

According to my valuation, the intrinsic value for the stock is £5.69, but it is currently trading at US£4.25 on the share market, meaning that there is still an opportunity to buy now. However, given that Sabre’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Sabre?

earnings-and-revenue-growthNasdaqGS:SABR Earnings and Revenue Growth April 5th 2023

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.

Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In the upcoming year, Sabre’s earnings are expected to increase by 30%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since SABR is currently undervalued, it may be a great time to accumulate more of your holdings in the stock.

With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you’ve been keeping an eye on SABR for a while, now might be the time to make a leap.

Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SABR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks.

Case in point: We’ve spotted 1 warning sign for Sabre you should be aware of. If you are no longer interested in Sabre, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

What are the risks and opportunities for Sabre?

Sabre Corporation, through its subsidiaries, provides software and technology solutions for the travel industry worldwide.
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View Full Analysis

Rewards

  • Trading at 25.4% below our estimate of its fair value

  • Earnings are forecast to grow 67.92% per year

Risks

  • Negative shareholders equity

View all Risks and Rewards

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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