Vontobel Holding AG (VTX:VONN): Are Analysts Bullish?
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Vontobel Holding AG’s (VTX:VONN) released its most recent earnings update in December 2018, which showed that the business benefited from a small tailwind, eventuating to a single-digit earnings growth of 9.0%. Today I want to provide a brief commentary on how market analysts perceive Vontobel Holding’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for Vontobel Holding
Analysts’ outlook for this coming year seems optimistic, with earnings expanding by a robust 21%. This growth seems to continue into the following year with rates reaching double digit 41% compared to today’s earnings, and finally hitting CHF357m by 2022.
Although it is useful to be aware of the rate of growth each year relative to today’s value, it may be more insightful determining the rate at which the company is growing on average every year. The benefit of this approach is that we can get a bigger picture of the direction of Vontobel Holding’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 14%. This means, we can expect Vontobel Holding will grow its earnings by 14% every year for the next couple of years.
Next Steps:
For Vontobel Holding, I’ve compiled three pertinent aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is VONN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VONN is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of VONN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
