What Does LivaNova PLC's (NASDAQ:LIVN) Share Price Indicate?

LivaNova PLC (NASDAQ:LIVN), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$58.14 and falling to the lows of US$41.20. 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 LivaNova's current trading price of US$41.20 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at LivaNova’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for LivaNova

What Is LivaNova Worth?

According to my valuation model, LivaNova seems to be fairly priced at around 9.5% below my intrinsic value, which means if you buy LivaNova today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $45.54, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, LivaNova has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from LivaNova?

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. LivaNova's revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust 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 LIVN’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on LIVN, now may not be the most optimal 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 LivaNova, 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.