First Watch Restaurant Group, Inc. (NASDAQ:FWRG) may not be the largest company on the market, but it has seen a decent 17% share price increase on the NASDAQGS over the past few months. Shareholders may appreciate the recent jump in share price, but the company still has a long way to go before it reclaims its yearly highs. With many analysts covering the stock, we can assume that any price-sensitive announcements have already been factored into the share price. But what if the stock is still a bargain? Let’s examine First Watch Restaurant Group’s valuation and outlook in more detail to see if there is still a bargain opportunity.

Check out our latest analysis for First Watch Restaurant Group

What opportunities does the First Watch Restaurant Group offer?

According to our valuation model, the stock appears to be fairly valued at the moment. It is trading around 11.10% above our intrinsic value, which means that if you buy First Watch Restaurant Group today, you would be paying a relatively reasonable price for it. And if you believe the company’s true value is $15.02, then there is actually no room for the stock to rise beyond its current price. In addition, First Watch Restaurant Group’s low beta means that the stock is less volatile than the overall market.

What does the future hold for the First Watch Restaurant Group?

Future prospects are an important consideration when you’re looking to buy a stock, especially if you’re an investor looking for growth in their portfolio. Although value investors would argue that intrinsic value relative to price is most important, high growth potential at a cheap price would be a more compelling investment thesis. With earnings expected to grow 74% over the next few years, the future looks bright for First Watch Restaurant Group. It looks like higher cash flow is on the horizon for the stock, which should lead to a higher share valuation.

What this means for you

Are you a shareholder? It seems like the market has already priced in FWRG’s positive outlook, with shares trading around their fair value. However, there are other important factors we haven’t considered today, such as the company’s financial strength. Have these factors changed since you last looked at the stock? Will you have enough conviction to buy if the price fluctuates below its true value?

Are you a potential investor? If you’ve been keeping an eye on FWRG, now may not be the best time to buy as the stock is trading around its fair value. However, the positive outlook for the company is encouraging, meaning it’s worth diving deeper into other factors such as the strength of its balance sheet to take advantage of the next price dip.

It can be very helpful to consider what analysts expect for First Watch Restaurant Group based on their recent forecasts. At Simply Wall St, we have the analyst estimates, which you can view here.

If you are no longer interested in First Watch Restaurant Group, you can use our free platform to see our list of over 50 other stocks with high growth potential.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.