In January 2024, InvestingPro’s Fair Value model highlighted Playa Hotels & Resorts N.V. (NASDAQ: PLYA) as significantly undervalued, forecasting a 31% potential upside from its price of $8.05. This insight, based on a sophisticated analysis of various valuation methods, set the stage for a remarkable growth trajectory.
Playa Hotels & Resorts, a prominent operator of all-inclusive resorts in Mexico and the Caribbean, had strong financials at the time, with annual revenue of $965 million and EBITDA of $253.6 million. Despite market fluctuations, with share prices moving between -8.5% and +14.5% over the previous six months, the company’s fundamentals remained solid.
InvestingPro’s analysis proved accurate, as Playa’s stock price rose by 51.68% over the next 15 months. The company’s performance continued to improve, with earnings per share increasing from $0.36 to $0.57, although revenue saw a slight dip to $928.7 million. Investors looking for undervalued opportunities today may want to explore similar stocks on the Most Undervalued list.
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