Altus Group Limited (TSE:AIF), might not be a large cap stock, but it saw a decent share price growth of 14% on the TSX over the last few months. While good news for shareholders, the company has traded much higher in the past year. With many analysts covering the 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? Let’s examine Altus Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Altus Group

What Is Altus Group Worth?

According to our valuation model, Altus Group seems to be fairly priced at around 13.55% above our intrinsic value, which means if you buy Altus Group today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is CA$47.25, there’s only an insignificant downside when the price falls to its real value. What's more, Altus Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Altus Group generate?

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. 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. Altus Group's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? AIF’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 track record of its management team. 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 tabs on AIF, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Altus Group as a business, it's important to be aware of any risks it's facing. Be aware that Altus Group is showing 3 warning signs in our investment analysis and 1 of those can't be ignored...