What Does MasterBrand, Inc.'s (NYSE:MBC) Share Price Indicate?

While MasterBrand, Inc. (NYSE:MBC) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a US$2.2b market-cap stock, it seems odd MasterBrand is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Today we will analyse the most recent data on MasterBrand’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for MasterBrand

What Is MasterBrand Worth?

Good news, investors! MasterBrand is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $23.38, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that MasterBrand’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will MasterBrand generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 9.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for MasterBrand, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since MBC is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MBC for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MBC. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for MasterBrand and we think they deserve your attention.

If you are no longer interested in MasterBrand, 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.