Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI), operating in the financial services industry based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s examine Atlantic Capital Bancshares’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Is Atlantic Capital Bancshares still cheap?According to my valuation model, Atlantic Capital Bancshares seems to be fairly priced at around 13.72% above my intrinsic value, which means if you buy Atlantic Capital Bancshares today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $14.94, there’s only an insignificant downside when the price falls to its real value. In addition to this, Atlantic Capital Bancshares has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from Atlantic Capital Bancshares?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. Atlantic Capital Bancshares’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger 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 ACBI’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on ACBI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Atlantic Capital Bancshares. You can find everything you need to know about Atlantic Capital Bancshares in the latest infographic research report. If you are no longer interested in Atlantic Capital Bancshares, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.