U.S. Markets closed

Is It Time To Consider Buying Bottomline Technologies (de), Inc. (NASDAQ:EPAY)?

Simply Wall St

Bottomline Technologies (de), Inc. (NASDAQ:EPAY), which is in the software business, and is based in United States, received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $47.08 at one point, and dropping to the lows of $41.13. 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 Bottomline Technologies (de)'s current trading price of $43.24 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 Bottomline Technologies (de)’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 Bottomline Technologies (de)

What is Bottomline Technologies (de) worth?

According to my valuation model, the stock is currently overvalued by about 33.9%, trading at US$43.24 compared to my intrinsic value of $32.29. This means that the opportunity to buy Bottomline Technologies (de) at a good price has disappeared! Another thing to keep in mind is that Bottomline Technologies (de)’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Bottomline Technologies (de)?

NasdaqGS:EPAY Past and Future Earnings, August 20th 2019

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. Bottomline Technologies (de)’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in EPAY’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe EPAY 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 EPAY 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 optimistic prospect is encouraging for EPAY, 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 Bottomline Technologies (de). You can find everything you need to know about Bottomline Technologies (de) in the latest infographic research report. If you are no longer interested in Bottomline Technologies (de), 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 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. Thank you for reading.