At UK£3.48, Is Marks and Spencer Group plc (LON:MKS) Worth Looking At Closely?

While Marks and Spencer Group plc ( LON:MKS ) might not have the largest market cap around , it led the LSE gainers...

featured-image

While Marks and Spencer Group plc ( ) might not have the largest market cap around , it led the LSE gainers with a relatively large price hike in the past couple of weeks. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price.

However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Marks and Spencer Group’s outlook and valuation to see if the opportunity still exists. Good news, investors! Marks and Spencer Group is still a bargain right now. According to our valuation, the intrinsic value for the stock is £5.



33, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Marks and Spencer Group’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.

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 35% over the next couple of years, the future seems bright for Marks and Spencer Group.

It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Since MKS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 capital structure to consider, which could explain the current undervaluation. If you’ve been keeping an eye on MKS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MKS.

But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted you should be aware of.

If you are no longer interested in Marks and Spencer Group, you can use our free platform to see our list of over.