Endo International plc (NASDAQ:ENDP), a pharmaceuticals company based in Ireland, led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Endo International’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Endo International
Is Endo International still cheap?Great news for investors – Endo International is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $27.48, but it is currently trading at $7.35 on the share market, meaning that there is still an opportunity to buy now. Endo International’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.
What kind of growth will Endo International generate?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. In the upcoming year, Endo International’s earnings are expected to increase by 93.37%, 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 Endo International is currently undervalued, it may be a great time to increase 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 capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Endo International 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 Endo International. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Endo International. You can find everything you need to know about Endo International in the latest infographic research report. If you are no longer interested in Endo International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.