FLIR Systems Inc (NASDAQ:FLIR), a electronic company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $55.39 and falling to the lows of $49.17. 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 FLIR Systems’s current trading price of $54 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at FLIR Systems’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 FLIR Systems
What’s the opportunity in FLIR Systems?
According to my valuation model, FLIR Systems seems to be fairly priced at around 18.81% above my intrinsic value, which means if you buy FLIR Systems today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $45.45, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like FLIR Systems’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from FLIR Systems?
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 more than double over the next couple of years, the future seems bright for FLIR Systems. 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? FLIR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? 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 FLIR, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into 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 FLIR Systems. You can find everything you need to know about FLIR Systems in the latest infographic research report. If you are no longer interested in FLIR Systems, 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.