Q: Simply Wall Street has GSY undervalued by 49.4% with earnings forecast to grow by 17.09% per year. Whereas they have PRL overvalued by 54.4% with earnings forecast to grow by 38.3% per year. They also have GLXY at 78.9% undervalued and earnings forecast to grow by 14.66% per year ......First question. Do you concur with these numbers ? Second question. Which one do you prefer and why ? Also please rank from first choice to third choice ......Thanks for your terrific service Garth ......
5i Research Answer:
Simply Wall St uses a few valuation tools to assess what it believes is the 'fair value', but largely these are automated methods that are likely a 'blanket' method across all types of stocks.
The forward earnings estimates per each stock are roughly in line with what we see as being the analyst estimates, but the under/overvaluations are quite subjective.
In terms of pure growth, particularly in the near-term, we like: PRL, GLXY, and GSY.
But for a long-term hold with a bit more of a conservative lean, we like: GSY, PRL, and GLXY.