What Does Nordson Corporation's (NASDAQ:NDSN) Share Price Indicate?

Today we're going to take a look at the well-established Nordson Corporation (NASDAQ:NDSN). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$279 at one point, and dropping to the lows of US$225. 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 Nordson's current trading price of US$241 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Nordson’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 Nordson

Is Nordson Still Cheap?

According to our valuation model, Nordson seems to be fairly priced at around 15% below our intrinsic value, which means if you buy Nordson today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $285.63, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Nordson’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Nordson?

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. Nordson's earnings over the next few years are expected to increase by 35%, 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? NDSN’s optimistic future growth appears to have been factored into the current share price, 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 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 NDSN, 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.

If you want to dive deeper into Nordson, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Nordson, and understanding this should be part of your investment process.

If you are no longer interested in Nordson, 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.

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