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Is It Time To Consider Buying Boston Private Financial Holdings, Inc. (NASDAQ:BPFH)?

Simply Wall St
·3 mins read

Boston Private Financial Holdings, Inc. (NASDAQ:BPFH), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$12.34 at one point, and dropping to the lows of US$9.14. 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 Boston Private Financial Holdings's current trading price of US$9.14 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 Boston Private Financial Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Boston Private Financial Holdings

What is Boston Private Financial Holdings worth?

Good news, investors! Boston Private Financial Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $14.58, but it is currently trading at US$9.14 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Boston Private Financial Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Boston Private Financial Holdings look like?

NasdaqGS:BPFH Past and Future Earnings, March 9th 2020
NasdaqGS:BPFH Past and Future Earnings, March 9th 2020

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. However, with a negative profit growth of -0.4% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Boston Private Financial Holdings. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although BPFH is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to BPFH, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on BPFH for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Boston Private Financial Holdings. You can find everything you need to know about Boston Private Financial Holdings in the latest infographic research report. If you are no longer interested in Boston Private Financial Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.