LeMaitre Vascular, Inc. (NASDAQ:LMAT), which is in the medical equipment business, and is based in United States, led the NASDAQGM gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on LeMaitre Vascular’s outlook and valuation to see if the opportunity still exists.
Is LeMaitre Vascular still cheap?LeMaitre Vascular appears to be overvalued by 46.57% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$31.27 on the market compared to my intrinsic value of $21.34. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since LeMaitre Vascular’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of LeMaitre Vascular look like?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. LeMaitre Vascular’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This 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 well and truly priced in LMAT’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe LMAT should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on LMAT for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for LMAT, which means it’s worth diving deeper into other factors 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 LeMaitre Vascular. You can find everything you need to know about LeMaitre Vascular in the latest infographic research report. If you are no longer interested in LeMaitre Vascular, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.