Market prices are constantly changing and that frequently changes whether a business is good value or not.
It's not an easy decision to make if you should buy a stock at any given price. The main thing is that you believe the business will grow its profit in the short-term and the long-term.
Here are five businesses that I think would make good long-term buys at today's prices:
Greencross Limited (ASX: GXL) is Australia's largest pet business with its Petbarn and Greencross Vet businesses.
It aims to keep growing its market share of the overall pet market and is expertly doing so by co-locating vet clinics inside its Petbarn shops. This allows the two businesses to promote each other. The new rewards point system gives customers more incentive to use both businesses as well.
Greencross is trading at 16.8x FY17's estimated earnings with a grossed-up dividend yield of 3.97%.
Costa Group Holdings Ltd (ASX: CGC)
Costa is one of Australia's largest fresh produce companies. It grows a variety of products including berries, mushrooms, citrus fruit, tomatoes and avocados. Costa could keep growing strongly through organic growth and acquisitions in the years to come.
Costa is trading at 56x FY16's earnings with a grossed-up dividend yield of 3.19%.
1300 Smiles Limited (ASX: ONT)
1300 Smiles is one of Australia's largest dental businesses. It has created a clever strategy of providing affordable care with a $1 a day plan. I think there could be a long growth runway ahead with the number of possible acquisition targets.
1300 Smiles is trading at 22x FY16's earnings with a grossed-up dividend yield of 4.58%.
Challenger Ltd (ASX: CGF)
Challenger is Australia's leading provider of annuities. The biggest customer for this product is people just entering retirement and wanting to turn their capital into a secure source of income. The number of retirees is expected to substantially increase over the coming years.
Challenger is trading at 19x FY17's estimated earnings with a grossed-up dividend yield of 3.73%.
TPG is one of Australia's leading telecommunications businesses and could soon cement that place with its new mobile networks in Australia and Singapore. The NBN might not be great for its broadband business, but it can still steal market share.
TPG is trading at 11.5x FY17's estimated earnings with a grossed-up dividend yield of 4.03%.
Foolish takeaway
I think all five of these businesses would make good additions to a Foolish portfolio. At the current prices I think Challenger will be the best long-term performer, but TPG is currently at the best value in my opinion.
