Almost Family Inc (NASDAQ:AFAM), a healthcare company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $64 and falling to the lows of $53.95. 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 Almost Family’s current trading price of $57.35 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 Almost Family’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 Almost Family
Is Almost Family still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12.35% below my intrinsic value, which means if you buy Almost Family today, you’d be paying a fair price for it. And if you believe that the stock is really worth $65.43, then there’s not much of an upside to gain from mispricing. In addition to this, it seems like Almost Family’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.
What does the future of Almost Family 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 more than double over the next couple of years, the future seems bright for Almost Family. 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? AFAM’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 AFAM, now may not be the most advantageous 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 Almost Family. You can find everything you need to know about Almost Family in the latest infographic research report. If you are no longer interested in Almost Family, 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.