Vistin Pharma ASA (OB:VISTIN): Is Now A Good Time To Buy?

Vistin Pharma ASA (OB:VISTIN) is considered a high-growth stock, but its last closing price of NOK11.2 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. Let’s look into this by assessing VISTIN's expected growth over the next few years. Check out our latest analysis for Vistin Pharma

What can we expect from Vistin Pharma in the future?

The excitement around Vistin Pharma's growth potential is not unfounded. Analyst expectations are extremely positive with earnings forecasted to rise significantly from today's level of NOK0.496 to NOK1.247 over the next three years. This results in an annual growth rate of 26.89%, on average, which signals a market-beating outlook in the upcoming years.

Is VISTIN available at a good price after accounting for its growth?

VISTIN is available at a PE (price-to-earnings) ratio of 22.59x today, which tells us the stock is undervalued based on its latest annual earnings update compared to the pharmaceuticals average of 22.75x , and overvalued compared to the NO market average ratio of 12.68x .

We already know that VISTIN appears to be undervalued based on its PE ratio, compared to the industry average. But, to be able to properly assess the value of a high-growth stock such as Vistin Pharma, we must incorporate its earnings growth in our valuation. The PEG ratio is a great calculation to take account of growth in the stock's valuation. A PE ratio of 22.59x and expected year-on-year earnings growth of 26.89% give Vistin Pharma a low PEG ratio of 0.84x. This means that, when we account for Vistin Pharma's growth, the stock can be viewed as fairly valued , based on its fundamentals.

What this means for you:

VISTIN's current undervaluation could signal a potential buying opportunity to increase your exposure to the stock, or it you're a potential investor, now may be the right time to buy. However, basing your investment decision off one metric alone is certainly not sufficient. There are many things I have not taken into account in this article and the PEG ratio is very one-dimensional. If you have not done so already, I urge you to complete your research by taking a look at the following:

1. Financial Health: Is VISTIN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
2. Valuation: What is VISTIN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VISTIN is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.