Is Now An Opportune Moment To Examine Merit Medical Systems, Inc. (NASDAQ:MMSI)?

While Merit Medical Systems, Inc. (NASDAQ:MMSI) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$85.24 and falling to the lows of US$72.38. 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 Merit Medical Systems' current trading price of US$73.50 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 Merit Medical Systems’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 Merit Medical Systems

What's The Opportunity In Merit Medical Systems?

According to my valuation model, Merit Medical Systems seems to be fairly priced at around 12.14% above my intrinsic value, which means if you buy Merit Medical Systems today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $65.55, there’s only an insignificant downside when the price falls to its real value. Furthermore, Merit Medical Systems’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Merit Medical Systems?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Merit Medical Systems' earnings over the next few years are expected to increase by 82%, indicating a highly optimistic future ahead. This should lead to more 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 MMSI’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 tabs on MMSI, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecasts for Merit Medical Systems mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

If you are no longer interested in Merit Medical Systems, 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.