DigitalBridge Group, Inc. (NYSE:DBRG), is not the largest company out there, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. 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 DigitalBridge Group’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for DigitalBridge Group

Is DigitalBridge Group Still Cheap?

Great news for investors – DigitalBridge Group is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $19.24, but it is currently trading at US$14.57 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because DigitalBridge Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will DigitalBridge 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. 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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for DigitalBridge Group, at least in the near future.

What This Means For You

Are you a shareholder? Although DBRG is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to DBRG, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on DBRG for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

So while earnings quality is important, it's equally important to consider the risks facing DigitalBridge Group at this point in time. When we did our research, we found 4 warning signs for DigitalBridge Group (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

If you are no longer interested in DigitalBridge Group, 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.