Should You Investigate Veeva Systems Inc. (NYSE:VEEV) At US$201?

Today we're going to take a look at the well-established Veeva Systems Inc. (NYSE:VEEV). The company's stock received a lot of attention from a substantial price increase on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Veeva Systems’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Veeva Systems

Is Veeva Systems Still Cheap?

According to my valuation model, Veeva Systems seems to be fairly priced at around 19.03% above my intrinsic value, which means if you buy Veeva Systems today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $169.25, there’s only an insignificant downside when the price falls to its real value. In addition to this, Veeva Systems has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Veeva Systems 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. 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. Veeva Systems' earnings over the next few years are expected to increase by 41%, 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 VEEV’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on VEEV, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 1 warning sign for Veeva Systems and we think they deserve your attention.

If you are no longer interested in Veeva 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.