Cramer on Under Armour: Still undervalued?

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(Click for video linked to a searchable transcript of this Mad Money segment)

With shares marching from about $45 to just shy of $80 ytd, what does Cramer think of Under Armour (UA), now?

If it were only a matter of looking at the company's execution the decision would be a no brainer.

Under Armour is "one of the best-run, most innovative companies in the entire apparel space, heck, one of the most innovative companies out there, period," said Cramer.

Recent results would seem to confirm his conclusion.

In July, Under Armour said it second-quarter net income more than doubled as consumers bought more of its athletic clothing and it expanded its shoe offerings. Results beat expectations with Under Armour reporting Q2 EPS of $0.16, $0.02 better than the analyst estimate of $0.14. Revenue for the quarter came in at $455 million versus the consensus estimate of $448.91 million.

Also the company raised its revenue outlook for the year, to a range of $2.23 billion to $2.25 billion, representing growth of 22% to 23% over 2012.

"Simply terrific," Cramer said.

However, making money in the market involves strategic timing. And with shares trading at 52-week highs the issue becomes whether the time to buy is now.

" Under Armour stock has rallied 65% for 2013, and it's up 365% over the last five years, to the point where Under Armour now sells for 43 times next year's earnings with a 20.5% long-term growth rate. You could make the argument that the stock is too expensive at these levels," said Cramer.

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Cramer, however, doesn't think that's the best argument.

Instead his comments suggest that because the stock has momentum and growth it rightfully commands a higher valuation.

And during Mad Money's exclusive interview with Kevin Plank, the founder, chairman and CEO of Under Armour, Cramer learned the company should still have huge growth ahead. "Under Armour is a $10 billion brand doing $2 billion today," Plank said

By the end of the interview Cramer commented that, "The market cap is too small for the idea. I think the move could actually still be in its infancy."

Read More: Cramer's performance test: Under Armour vs. Nike

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