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At US$192, Is Nordson Corporation (NASDAQ:NDSN) Worth Looking At Closely?

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Simply Wall St
·3 min read
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Nordson Corporation (NASDAQ:NDSN) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$207 and falling to the lows of US$179. 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 Nordson's current trading price of US$192 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 Nordson’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Nordson

What's the opportunity in Nordson?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 4.8% below my intrinsic value, which means if you buy Nordson today, you’d be paying a fair price for it. And if you believe the company’s true value is $202.12, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Nordson has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Nordson generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Nordson's earnings over the next few years are expected to increase by 82%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in NDSN’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 the stock? 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 NDSN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Nordson has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in Nordson, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.