Should you think about buying Regis Healthcare Limited (ASX: REG) now? – Simply Wall St News

Regis Healthcare Limited (ASX: REG), which operates in the health sector and is based in Australia,
The ASX share price has risen more than 20% in the last two months.
With many badysts covering the stock, we can expect all price sensitive ads to have already been embedded in the stock price.
However, could the stock still be traded at a relatively cheap price?
Let's take a closer look at Regis Healthcare's valuation and prospects to determine if there is still a trading opportunity.

See our latest badysis for Regis Healthcare

What is the opportunity at Regis Healthcare?

According to my relative valuation model, the action seems to be currently at a fair price.
In this case, I used the price / earnings (PE) ratio as there is not enough information to reliably predict the cash flow of the stock. I find that Regis Healthcare's 20.16 ratio is trading slightly
higher than its sector peers ratio, which is 18.87 times, which means that if you buy Regis Healthcare today, you will pay a
reasonable
price for that.
And if you believe that Regis Healthcare should be trading at this level in the long run, there is only an insignificant disadvantage when the price drops to its true value.
Although, there may be an opportunity to buy in the future. Indeed, the beta of Regis Healthcare (measure of stock price volatility) is high, which means that its price fluctuations will be exaggerated compared to the rest of the market. If the market is bearish, the company's shares will likely fall more than the rest of the market, providing an excellent buying opportunity.

Can we expect growth from Regis Healthcare?

Investors looking for growth in their portfolio may want to consider a company's prospects before buying its shares.
Although value-based investors claim that intrinsic price value matters most, a more convincing investment thesis would be high growth potential at a cheap price.
The benefits of Regis Healthcare over the next few years are expected to increase by 23%, pointing to a very optimistic future. This should lead to more robust cash flows and a higher share value.

What does this mean for you?

Are you a shareholder?
The optimism of the future growth of REG seems to have been taken into account in the current share price,
with shares traded around its fair value. However, there are also other important factors that we have not taken into account today, such as:
the financial strength of the company.
Have these factors changed since the last time you looked at REG? Will you have enough
belief to buy if the price fluctuates below the real value?

Are you a potential investor?
If you have been
keep an eye on REG,
now maybe not the most
advantageous
the time to buy, since it is trading around its fair value. However, the
positive vision
is encouraging for REG, which means that it is worth
deepen the examination
other factors, such as the strength of its balance sheet, in order to take advantage of the next price decline.

The price is only the tip of the iceberg. Deepen what really matters – the basics – before making a decision about Regis Healthcare. You will find everything you need to know about Regis Healthcare in the latest Infographic Search Report. If Regis Healthcare does not interest you anymore, you can use our free platform to view my list of more than 50 other stocks with high growth potential.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.