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While Euronet Worldwide, Inc. (NASDAQ:EEFT) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$121 and falling to the lows of US$90.72. 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 Euronet Worldwide's current trading price of US$91.75 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Euronet Worldwide’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Euronet Worldwide worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10.57% above my intrinsic value, which means if you buy Euronet Worldwide today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $82.98, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Euronet Worldwide’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.
Can we expect growth from Euronet Worldwide?
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 the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Euronet Worldwide. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? EEFT’s optimistic future growth appears to have been factored into the current share price, 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 the stock? 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 tabs on EEFT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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.
If you'd like to know more about Euronet Worldwide as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 4 warning signs for Euronet Worldwide and you'll want to know about these.
If you are no longer interested in Euronet Worldwide, 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.
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