Vanda Pharmaceuticals Inc (NASDAQ:VNDA), a pharmaceuticals, biotechnology and life sciences company based in United States, View our latest analysis for Vanda Pharmaceuticals
What is VNDA worth?
According to my valuation model, VNDA seems to be fairly priced at around 4% above my intrinsic value, which means if you buy VNDA today, you’d be paying a relatively reasonable price for it. And if you believe that VNDA is really worth $16.37, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that VNDA’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from VNDA?
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.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 VNDA future expectations. With revenues expected to grow by 71.84% over the next couple of years, the future seems bright for VNDA. If the level of expenses is able to be maintained, 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 VNDA’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 track record of its management team. Have these factors changed since the last time you looked at VNDA? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on VNDA, 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 VNDA, 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 Vanda Pharmaceuticals. You can find everything you need to know about VNDA in the latest infographic research report. If you are no longer interested in Vanda Pharmaceuticals, 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.