Is There Now An Opportunity In Edgewell Personal Care Company (NYSE:EPC)?

Edgewell Personal Care Company (NYSE:EPC), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Edgewell Personal Care’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Edgewell Personal Care

What's The Opportunity In Edgewell Personal Care?

According to my valuation model, Edgewell Personal Care seems to be fairly priced at around 14.69% above my intrinsic value, which means if you buy Edgewell Personal Care today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $35.31, there’s only an insignificant downside when the price falls to its real value. What's more, Edgewell Personal Care’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Edgewell Personal Care generate?

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. Edgewell Personal Care's earnings over the next few years are expected to increase by 36%, 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? EPC’s optimistic future growth appears to have been factored into the current share price, 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 EPC, 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.

If you want to dive deeper into Edgewell Personal Care, you'd also look into what risks it is currently facing. For instance, we've identified 2 warning signs for Edgewell Personal Care (1 is a bit unpleasant) you should be familiar with.

If you are no longer interested in Edgewell Personal 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.