Is It Too Late To Consider Buying Tandem Diabetes Care, Inc. (NASDAQ:TNDM)?

Tandem Diabetes Care, Inc. (NASDAQ:TNDM), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to US$33.41 at one point, and dropping to the lows of US$14.28. 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 Tandem Diabetes Care's current trading price of US$14.28 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Tandem Diabetes Care’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Tandem Diabetes Care

Is Tandem Diabetes Care Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10% below my intrinsic value, which means if you buy Tandem Diabetes Care today, you’d be paying a fair price for it. And if you believe that the stock is really worth $15.91, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Tandem Diabetes Care’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Tandem Diabetes Care?

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. Tandem Diabetes Care's earnings over the next few years are expected to increase by 91%, 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 TNDM’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on TNDM, 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Tandem Diabetes Care as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Tandem Diabetes Care you should be aware of.

If you are no longer interested in Tandem Diabetes Care, 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.