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When Should You Buy New Age Beverages Corporation (NASDAQ:NBEV)?

New Age Beverages Corporation (NASDAQ:NBEV), a beverage company based in United States, received a lot of attention from a substantial price increase on the NasdaqCM 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 New Age Beverages’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. View out our latest analysis for New Age Beverages

What is New Age Beverages worth?

According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-book (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that New Age Beverages’s ratio of 1.57x is trading slightly below its industry peers’ ratio of 2.9x, which means if you buy New Age Beverages today, you’d be paying a relatively fair price for it. And if you believe New Age Beverages should be trading in this range, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since New Age Beverages’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will New Age Beverages generate?

NasdaqCM:NBEV Future Profit June 25th 18
NasdaqCM:NBEV Future Profit June 25th 18

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 86.98% over the next year, the near-term future seems bright for New Age Beverages. 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? It seems like the market has already priced in NBEV’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at NBEV? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on NBEV, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for NBEV, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on New Age Beverages. You can find everything you need to know about New Age Beverages in the latest infographic research report. If you are no longer interested in New Age Beverages, 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.

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