Managing the Jupiter Fund (LSE: JUP) Actions increased by more than 10% in trade today (July 10), pushing FTSE 250 Share to fresh 52-weekly ups. Despite this, the price ratio to profit (P/E) of the company is 8.09, below the decent value reference point of 10, which I operate when choosing the shares. This is why wrestling is collected and why I think it can develop.

Plaintiff

The most essential news that caused a jump today was confirmation of the acquisition of CCL for 100 million pounds. CCLA is the largest asset manager in Great Britain who focuses on servicing non-profit organization. This means that managers look after funds for charity and religious organizations.

CCLA currently manages about 15 billion pounds of managed assets. This is a key indicator that companies look at in this sector, because the fees they charge depend on how much it is managed. The bonus for Jupiter is that it currently cares about 44.3 billion GBP. So the size of funds added from this movement is significant.

CEO of Matthew Beesley noticed another benefit of this contract. He said “It opens a new segment of customers for us, expanding our appeal to a number of charity and religious institutions, both in Great Britain and the international arena“Taking a different database of customers than Jupiter usually means that there is no conflict of interests from existing customers.

Still underestimated

Over the past year, shares have increased by 33%. In addition to today’s movement, the company used stronger financial results. This included higher basic operational margins, along with earnings for action and the number of net income that achieved estimates.

However, based on the current price of the action, the P/E indicator indicates that there is another place for growth. For comparison, competitors like Place of St. James (16.55) I Lipstrust assets management (14.65) have higher indicators. If I include the p/e 15 indicator in the coming year for Jupiter and I assume that the profit per share remains the same, it would mean that the price of the shares would have to enhance by 84%!

This is not guaranteed. The company is associated with this risk, such as relying on the managers of the Star Fund. Last year, Ben Whitmore’s departure was observed that billions moved out of Jupiter, emphasizing the dependence on good performers who are true to the company.

In addition, we will have to wait and see how well the integration with CCLA is doing. Although it should be a huge win, there may be brief -term headaches when combined.

Even with these fears, I think that the company is now in a good place and the future looks clear. Considering the valuation indicators I have gone through, I am seriously thinking about buying stocks to add to my wallet.