The Afterpay Touch Group Ltd (ASX: APT) share price has gone ballistic for over a year now, rising from less than $5 to over $20.

Afterpay Share Price V. ASX 200 (XJO)

afterpay-share-price-asx-apt
Source: Google Finance

Afterpay Touch is the owner of the popular “buy now, pay later” app. As of early 2019, Afterpay had over 3.5 million registered users worldwide, making it one of Australia’s true technology success stories.

What Analysts Think Of Afterpay

Afterpay shares are popping up just about every growth investor’s portfolio. But what do analysts make of its prospects?

According to data sourced by The Wall Street Journal there are six analysts covering Afterpay shares, with five having a positive rating on the shares – one has a hold rating. The average intrinsic value is around $23 or slightly higher than the current share price.

Price V. Value – Know The Difference

Share prices are one thing. Knowing the value of a share is completely different and far more important. Share prices are the price of admission to the party; value tells you whether or not it’s worth going inside.

Unfortunately, simply taking another investor or analyst’s valuation and running with it can be incredibly dangerous because the value is based on a set of assumptions made by him or her.

Buy, Hold or Sell

Growth shares like Afterpay can be extremely rewarding but also extremely risky investments so it’s important to go into it with your eyes wide open to the potential risks and rewards.

It’s also important to diversify. So if you’re considering buying Afterpay look at other similar, fast-growth companies before taking the plunge.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).