Merit Medical Systems, Inc. (NASDAQ:MMSI), which is in the medical equipment business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $61.17 at one point, and dropping to the lows of $35.07. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Merit Medical Systems's current trading price of $35.07 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 Merit Medical Systems’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Merit Medical Systems worth?
Good news, investors! Merit Medical Systems is still a bargain right now. According to my valuation, the intrinsic value for the stock is $45.14, but it is currently trading at US$35.07 on the share market, meaning that there is still an opportunity to buy now. However, given that Merit Medical Systems’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Merit Medical Systems 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 more than double over the next couple of years, the future seems bright for Merit Medical Systems. It looks like higher cash flow 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 MMSI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on MMSI for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MMSI. 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Merit Medical Systems. You can find everything you need to know about Merit Medical Systems in the latest infographic research report. If you are no longer interested in Merit Medical Systems, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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