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ServisFirst Bancshares, Inc. (NASDAQ:SFBS), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $35.36 and falling to the lows of $31.34. 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 ServisFirst Bancshares's current trading price of $32.72 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 ServisFirst Bancshares’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is ServisFirst Bancshares worth?
Good news, investors! ServisFirst Bancshares is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $44.8, but it is currently trading at US$32.72 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because ServisFirst Bancshares’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from ServisFirst Bancshares?
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. Though in the case of ServisFirst Bancshares, it is expected to deliver a relatively unexciting earnings growth of 5.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for ServisFirst Bancshares, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since SFBS is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 SFBS for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SFBS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ServisFirst Bancshares. You can find everything you need to know about ServisFirst Bancshares in the latest infographic research report. If you are no longer interested in ServisFirst Bancshares, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.