What does the stock price of Thryv Holdings, Inc. (NASDAQ: THRY) indicate?
While Thryv Holdings, Inc. (NASDAQ:THRY) may not be the best-known stock right now, it has seen a double-digit stock price rise of more than 10% in over the past two months on the NASDAQCM. With plenty of analysts covering the stock, we can expect any price-sensitive announcements to have already factored into the stock price. But what if there is still an opportunity to buy? Let’s take a closer look at Thryv Holdings’ valuation and outlook to determine if there is still a bargain opportunity.
See our latest analysis for Thryv Holdings
What is Thryv Holdings worth?
Good news for investors – Thryv Holdings is still trading at a fairly cheap price according to my multiple price model, where I compare the company’s price-earnings ratio to the industry average. In this case, I used the Price/Earnings (PE) ratio since there is not enough information to reliably predict the stock’s cash flow. I find Thryv Holdings’ ratio of 10.36x to be below its average of 15.52x, indicating that the stock is trading at a lower price than the media industry. What’s more interesting is that Thryv Holdings’ stock price is quite stable, which could mean two things: one, it might take some time for the stock price to get closer to its industry peers, and second, there may be less chance of buying low in the future once it reaches that value. This is because the stock is less volatile than the broader market given its low beta.
What type of growth will Thryv Holdings generate?
Investors looking for portfolio growth may want to consider a company’s prospects before buying its stock. Although value investors argue that it is intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. However, with negative earnings growth of -11% expected over the next two years, near-term growth certainly does not appear to be a driver for a buy decision for Thryv Holdings. This certainty tilts the risk-reward scale toward higher risk.
What does this mean to you :
Are you a shareholder? Although THRY is currently trading below the industry PE ratio, the unfavorable outlook of negative growth carries a degree of risk. Consider whether you want to increase your portfolio’s exposure to THRY or whether diversifying into another security may be a better decision for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on THRY for a while, but are hesitant to take the plunge, I’d recommend doing some more in-depth research on the stock. Given its current price multiple, now is the perfect time to make a decision. But keep in mind the risks that come with a negative growth outlook going forward.
If you want to learn more about Thryv Holdings as a business, it is important to be aware of the risks it faces. To help you, we found 7 warning signs (1 can’t be ignored!) you need to know before buying shares of Thryv Holdings.
If you are no longer interested in Thryv Holdings, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.