NTN Buzztime Inc (AMEX:NTN), a media company based in United States, saw significant share price volatility over the past couple of months on the AMEX, rising to the highs of $7.6 and falling to the lows of $5.45. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether NTN’s current trading price of $5.52 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at NTN’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for NTN Buzztime
What is NTN worth?
According to my valuation model, NTN seems to be fairly priced at around 15% above my intrinsic value, which means if you buy NTN today, you’d be paying a relatively fair price for it. And if you believe that NTN is really worth $4.81, there’s only an insignificant downside when the price falls to its real value. Furthermore, it seems like NTN’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because NTN’s stock is less volatile than the wider market given its low beta.
What does the future of NTN look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 98.98% over the next year, the near-term future seems bright for NTN. 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 NTN’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 NTN? 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 tabs on NTN, 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 NTN, 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 NTN Buzztime. You can find everything you need to know about NTN in the latest infographic research report. If you are no longer interested in NTN Buzztime, 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.