Is Now The Time To Look At Buying LiveChat Software S.A. (WSE:LVC)?

While LiveChat Software S.A. (WSE:LVC) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the WSE, rising to highs of zł135 and falling to the lows of zł112. 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 LiveChat Software's current trading price of zł115 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 LiveChat Software’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 LiveChat Software

What is LiveChat Software worth?

According to my valuation model, LiveChat Software seems to be fairly priced at around 1.63% above my intrinsic value, which means if you buy LiveChat Software today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is PLN113.55, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, LiveChat Software’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from LiveChat Software?

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. With profit expected to grow by 39% over the next couple of years, the future seems bright for LiveChat Software. 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? It seems like the market has already priced in LVC’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 LVC, 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of LiveChat Software.

If you are no longer interested in LiveChat Software, 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.