Is it time to add Restaurant Brands International Inc. (NYSE:QSR) to your watchlist at $72.12?

Restaurant Brands International Inc. (NYSE:QSR) saw significant price movements over the past few months on the NYSE, rising to highs of $74.93 and falling to lows of $66.55. Some stock price movements may provide investors with a better opportunity to enter the stock and potentially buy at a lower price. One question that needs to be answered is whether Restaurant Brands International's current trading price of $72.12 reflects the true value of the large-cap company. Or is it currently undervalued and offers us an opportunity to buy? Let's take a look at Restaurant Brands International's outlook and value based on the most recent financial data to see if there are any triggers for a price change.

Check out our latest analysis for Restaurant Brands International

How much is Restaurant Brands International worth?

Based on our discounted cash flow valuation, Restaurant Brands International currently appears to be overvalued by 26%. The stock's market price is currently $72.12, compared to our intrinsic value of $57.37. This means that the opportunity to buy Restaurant Brands International at a good price has disappeared! Additionally, Restaurant Brands International's share price also appears to be relatively stable compared to the rest of the market, as evidenced by its low beta. If you believe that the stock price should eventually reach its true value, a low beta could indicate that it is unlikely to do so quickly any time soon, and once it does, it may be difficult to get back into it an attractive buying range to fall back.

What does the future hold for Restaurant Brands International?

Future prospects are an important aspect when considering purchasing a stock, especially if you are an investor seeking growth in your portfolio. Buying a great company with a robust outlook at a great price is always a good investment. So let's also take a look at the company's future expectations. With earnings expected to grow 53% over the next few years, the future looks bright for Restaurant Brands International. It looks like higher cash flow is expected for the stock, which should lead to a higher share valuation.

What this means for you

Are you a shareholder? QSR's optimistic future growth appears to have been factored into its current share price, with shares trading above their fair value. However, this raises another question: Is now the right time to sell? If you believe that QSR should trade below its current price, it may be profitable to sell at a high price and then buy it again when the price falls towards its true value. But before you make that decision, consider whether the fundamentals have changed.

Are you a potential investor? If you've been keeping an eye on QSR for a while, now might not be the best time to enter the stock. The price has exceeded its true value, meaning there is no benefit from mispricing. However, the bullish outlook for QSR is encouraging, making it worth diving deeper into other factors in order to benefit from the next price drop.

Keep in mind that when analyzing a stock, it is important to consider the risks involved. To help with this, we discovered 3 warning signs (1 is a bit worrying!), which is what you should be aware of before buying Restaurant Brands International stock.

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

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute 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 focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.