Is it time to consider buying Kingfisher plc (LON:KGF)?

Kingfisher plc (LON:KGF) isn’t the biggest company in the market, but it has dominated the LSE gainers with a relatively large price rise over the past two weeks. The company’s trading levels have reached their highest level in the last year, following the recent rebound in the share price. As a mid-cap stock with high analyst coverage, you can assume that any recent changes in the company’s outlook are already priced into the stock. But what if there is still a buying opportunity? Let’s take a closer look at Kingfisher’s valuation and outlook to determine if there’s still a bargain opportunity.

Check out our latest analysis for Kingfisher

What is the kingfisher worth?

Good news, investors! Kingfisher is still a good deal right now. According to our valuation, the intrinsic value of the stock is £4.03, but it is currently trading at UK£2.54 on the stock market, meaning there is still a buying opportunity now. Another thing to keep in mind is that Kingfisher’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current stock price should move towards its intrinsic value over time, a low beta could suggest that it probably won’t reach that level anytime soon, and once there will be, it might be difficult to fall back into a withdrawn state. a once again attractive buying range.

What kind of growth will Kingfisher generate?

LSE: KGF Profit and revenue growth May 8, 2024

Future outlook is an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a strong outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Kingfisher’s profits are expected to grow by 43% over the next few years, suggesting a very optimistic future. This should lead to more robust cash flows, translating into a higher stock market value.

What this means for you

Are you a shareholder? Given that KGF is currently undervalued, now may be a great time to accumulate more of your stock holdings. With a positive outlook on the horizon, it appears this growth has yet to be fully factored into the stock price. However, other factors should also be considered, such as financial health, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KGF for a while, now might be a good time to get into the stock. Its optimistic future outlook is not yet fully reflected in the current stock price, meaning it’s not too late to buy KGF. But before making an investment decision, consider other factors such as the track record of its management team, in order to make an informed purchase.

So if you want to dig deeper into this stock, it’s crucial to consider the risks it faces. For example – Kingfisher has 1 warning sign we think you should be aware of this.

If you are no longer interested in Kingfisher, you can use our free platform to view our list of over 50 other stocks with high growth potential.

The assessment is complex, but we help to simplify it.

Find out if Kingfisher is potentially overvalued or undervalued by checking out our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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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 constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.