Should You Think About Buying LeMaitre Vascular, Inc. (NASDAQ:LMAT) Now?

While LeMaitre Vascular, Inc. (NASDAQ:LMAT) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the NASDAQGM over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at LeMaitre Vascular’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Our analysis indicates that LMAT is potentially overvalued!

What Is LeMaitre Vascular Worth?

According to my valuation model, LeMaitre Vascular seems to be fairly priced at around 5.69% above my intrinsic value, which means if you buy LeMaitre Vascular today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $47.37, then there isn’t really any room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because LeMaitre Vascular’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from LeMaitre Vascular?

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. 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. With profit expected to grow by 47% over the next couple of years, the future seems bright for LeMaitre Vascular. 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? It seems like the market has already priced in LMAT’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on LMAT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing LeMaitre Vascular at this point in time. In terms of investment risks, we've identified 1 warning sign with LeMaitre Vascular, and understanding this should be part of your investment process.

If you are no longer interested in LeMaitre Vascular, 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.