What Is IDEX Corporation's (NYSE:IEX) Share Price Doing?

Today we're going to take a look at the well-established IDEX Corporation (NYSE:IEX). The company's stock had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$224 to US$242. However, is this the true valuation level of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IDEX’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 IDEX

What's The Opportunity In IDEX?

According to my valuation model, IDEX seems to be fairly priced at around 1.21% above my intrinsic value, which means if you buy IDEX today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $228.23, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, IDEX has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from IDEX?

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 grow by 21% over the next couple of years, the future seems bright for IDEX. 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? IEX’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 IEX, 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in IDEX, 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.