Why Edgewell Personal Care Company (NYSE:EPC) Could Be Worth Watching

While Edgewell Personal Care Company (NYSE:EPC) might not be the most widely known stock at the moment, 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. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Edgewell Personal Care’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Edgewell Personal Care

Is Edgewell Personal Care Still Cheap?

According to my valuation model, Edgewell Personal Care seems to be fairly priced at around 9.92% 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 the company’s true value is $39.59, 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.

Can we expect growth from Edgewell Personal Care?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 54% over the next couple of years, the future seems bright for Edgewell Personal Care. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in EPC’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 an eye on EPC, 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 Edgewell Personal Care as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 2 warning signs we've spotted with Edgewell Personal Care (including 1 which is concerning).

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.