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Is It Time To Buy IDEX Corporation (NYSE:IEX)?

Willa Russo

Let’s talk about the popular IDEX Corporation (NYSE:IEX). The company’s shares received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $150.37 at one point, and dropping to the lows of $130.9. 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 IDEX’s current trading price of $136.6 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IDEX’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for IDEX

What is IDEX worth?

According to my valuation model, the stock is currently overvalued by about 35%, trading at US$136.60 compared to my intrinsic value of $101.17. This means that the buying opportunity has probably disappeared for now. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that IDEX’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.

Can we expect growth from IDEX?

NYSE:IEX Future Profit May 10th 18

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 grow by 32.12% over the next couple of years, the future seems bright for IDEX. 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? It seems like the market has well and truly priced in IEX’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe IEX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on IEX for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for IEX, which means it’s worth diving deeper into other factors 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 IDEX. You can find everything you need to know about IDEX in the latest infographic research report. If you are no longer interested in IDEX, 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.