Is It Time To Buy MYnd Analytics Inc (NASDAQ:MYND)?
MYnd Analytics Inc (NASDAQ:MYND), a healthcare services company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqCM. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine MYnd Analytics’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for MYnd Analytics
What is MYnd Analytics worth?
According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-book (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that MYnd Analytics’s ratio of 3.21x is trading slightly above its industry peers’ ratio of 2.86x, which means if you buy MYnd Analytics today, you’d be paying a relatively fair price for it. And if you believe MYnd Analytics should be trading in this range, 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 MYnd Analytics’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 MYnd Analytics look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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 grow by 48.00% over the next year, the near-term future seems bright for MYnd Analytics. 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 already priced in MYnd Analytics’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at MYnd Analytics? 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 an eye on MYnd Analytics, 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 MYnd Analytics, which means it’s worth further examining 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 MYnd Analytics. You can find everything you need to know about MYnd Analytics in the latest infographic research report. If you are no longer interested in MYnd Analytics, 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.
