Although I’m a big fan of the likes of Afterpay Touch Group Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC), there’s no denying that they trade on astronomical multiples at the moment. While I am confident they will go on to justify this, the premium does make them high risk options for investors. Luckily, though, you don’t always have to pay over the odds for quality growth shares. Here are three growth shares that I think are trading at very attractive prices: Aristocrat Leisure Limited (ASX: ALL) According to a recent note out of Goldman Sachs, it expects this…
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While I am confident they will go on to justify this, the premium does make them high risk options for investors.
Luckily, though, you don’t always have to pay over the odds for quality growth shares.
Here are three growth shares that I think are trading at very attractive prices:
Aristocrat Leisure Limited (ASX: ALL)
According to a recent note out of Goldman Sachs, it expects this leading gaming technology company to achieve earnings per share of $1.19 this year and then $1.50 in FY 2019. Based on these forecasts, Aristocrat Leisure’s shares are currently changing hands at just 19x FY 2019 earnings. I believe this is excellent value for a company with such a positive growth profile thanks to its leading core pokie machine business and explosive digital business.
Bellamy’s Australia Ltd (ASX: BAL)
The shares of this organic infant formula company have fallen over 55% from their 52-week high. This decline was driven by delays to the company gaining the CFDA accreditation needed to sell Chinese labelled products in the massive China market. I believe it is only a matter of time until it is granted this accreditation and expect its sales to jump significantly when this happens. Based on Goldman’s forecasts for Bellamy’s in FY 2019, its shares are changing hands at 22x forward earnings today. I think this is great value and makes it well worth considering.
Helloworld Travel Ltd (ASX: HLO)
Another growth share which I think is trading at a very attractive price is Helloworld. In FY 2018 the company grew its profits by a massive 48.1% to $32 million thanks to the growing popularity of its offering. While this growth is expected to moderate a touch in FY 2019, management still expects profit growth in the region of 16.5% and 23%. Despite this, its shares are still only changing hands at 19x estimated forward earnings.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, Helloworld Limited, and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.