At $5.65, Is It Time To Buy Telenav Inc (NASDAQ:TNAV)?
Telenav Inc (NASDAQ:TNAV), a software company based in United States, received a lot of attention from a substantial price increase on the NasdaqGS over the last few months. Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s examine Telenav’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Telenav
What’s the opportunity in Telenav?
Good news, investors! Telenav is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $10.56, but it is currently trading at $5.65 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Telenav’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Telenav look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 89.45% over the next couple of years, the future seems bright for Telenav. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since Telenav is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Telenav for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Telenav. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Telenav. You can find everything you need to know about Telenav in the latest infographic research report. If you are no longer interested in Telenav, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
