Is Now The Time To Look At Buying Oxford Instruments plc (LON:OXIG)?

Oxford Instruments plc (LON:OXIG), is not the largest company out there, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£21.95 and falling to the lows of UK£19.28. 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 Oxford Instruments' current trading price of UK£19.80 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 Oxford Instruments’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 Oxford Instruments

What Is Oxford Instruments Worth?

According to our valuation model, Oxford Instruments seems to be fairly priced at around 10.89% above our intrinsic value, which means if you buy Oxford Instruments today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth £17.86, there’s only an insignificant downside when the price falls to its real value. Furthermore, Oxford Instruments’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Oxford Instruments?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Oxford Instruments' earnings over the next few years are expected to increase by 26%, 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 OXIG’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 tabs on OXIG, now may not be the most optimal 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.

Diving deeper into the forecasts for Oxford Instruments mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Oxford Instruments, 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.