Should You Think About Buying Integral Diagnostics Limited (ASX:IDX) Now?

While Integral Diagnostics Limited (ASX:IDX) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the ASX, rising to highs of AU$4.25 and falling to the lows of AU$3.50. 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 Integral Diagnostics' current trading price of AU$3.57 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 Integral Diagnostics’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 Integral Diagnostics

Is Integral Diagnostics still cheap?

Good news, investors! Integral Diagnostics is still a bargain right now. According to my valuation, the intrinsic value for the stock is A$4.83, but it is currently trading at AU$3.57 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Integral Diagnostics’s share price may be quite stable relative to the rest of 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.

What does the future of Integral Diagnostics look like?

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 Integral Diagnostics. 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? Since IDX is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on IDX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy IDX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you'd like to know more about Integral Diagnostics as a business, it's important to be aware of any risks it's facing. When we did our research, we found 4 warning signs for Integral Diagnostics (1 is potentially serious!) that we believe deserve your full attention.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.