Should You Investigate Fox Factory Holding Corp. (NASDAQ:FOXF) At US$28.86?

Fox Factory Holding Corp. (NASDAQ:FOXF), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$41.50 and falling to the lows of US$28.86. 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 Fox Factory Holding's current trading price of US$28.86 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 Fox Factory Holding’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 Fox Factory Holding

Is Fox Factory Holding Still Cheap?

According to our valuation model, the stock is currently overvalued by about 38%, trading at US$28.86 compared to our intrinsic value of $20.90. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since Fox Factory Holding’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.

What kind of growth will Fox Factory Holding generate?

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 Fox Factory Holding. 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? FOXF’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe FOXF should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on FOXF for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for FOXF, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Fox Factory Holding, you'd also look into what risks it is currently facing. For example, Fox Factory Holding has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.