At US$46.17, Is CF Industries Holdings, Inc. (NYSE:CF) Worth Looking At Closely?
Simply Wall St
Wed, September 8, 2021, 12:55 PM
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CF Industries Holdings, Inc. (NYSE:CF), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$55.56 and falling to the lows of US$43.34. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CF Industries Holdings' current trading price of US$46.17 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CF Industries Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for CF Industries Holdings
What's the opportunity in CF Industries Holdings?
Good news, investors! CF Industries Holdings is still a bargain right now. According to my valuation, the intrinsic value for the stock is $64.92, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, CF Industries Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of CF Industries Holdings look like?
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Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 68% over the next couple of years, the future seems bright for CF Industries Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.