Is Now An Opportune Moment To Examine DENTSPLY SIRONA Inc. (NASDAQ:XRAY)?

By
Simply Wall St
Published
November 11, 2021
NasdaqGS:XRAY
Source: Shutterstock

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$66.71 and falling to the lows of US$54.94. 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 DENTSPLY SIRONA's current trading price of US$55.73 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DENTSPLY SIRONA’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 DENTSPLY SIRONA

What is DENTSPLY SIRONA worth?

Great news for investors – DENTSPLY SIRONA is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $81.82, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. DENTSPLY SIRONA’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from DENTSPLY SIRONA?

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NasdaqGS:XRAY Earnings and Revenue Growth November 11th 2021

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. DENTSPLY SIRONA's earnings over the next few years are expected to increase by 60%, 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? Since XRAY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on XRAY for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy XRAY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you'd like to know more about DENTSPLY SIRONA as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of DENTSPLY SIRONA.

If you are no longer interested in DENTSPLY SIRONA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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