Is Everbridge, Inc. (NASDAQ:EVBG) Potentially Undervalued?
Everbridge, Inc. (NASDAQ:EVBG), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NASDAQGM over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Everbridge’s outlook and value based on the most recent financial data to see if the opportunity still exists.
See our latest analysis for Everbridge
Is Everbridge Still Cheap?
Great news for investors – Everbridge is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $34.97, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Another thing to keep in mind is that Everbridge’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Everbridge look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted profit growth of 1.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Everbridge, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since EVBG is currently undervalued, it may be a great time to increase your holdings in the stock. 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 EVBG for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EVBG. 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 investment decision.
So while earnings quality is important, it's equally important to consider the risks facing Everbridge at this point in time. At Simply Wall St, we found 2 warning signs for Everbridge and we think they deserve your attention.
If you are no longer interested in Everbridge, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
