At US$358, Is It Time To Put Bio-Rad Laboratories, Inc. (NYSE:BIO) On Your Watch List?

Today we're going to take a look at the well-established Bio-Rad Laboratories, Inc. (NYSE:BIO). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$423 at one point, and dropping to the lows of US$350. 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 Bio-Rad Laboratories' current trading price of US$358 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 Bio-Rad Laboratories’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 Bio-Rad Laboratories

Is Bio-Rad Laboratories Still Cheap?

According to my valuation model, Bio-Rad Laboratories seems to be fairly priced at around 1.8% below my intrinsic value, which means if you buy Bio-Rad Laboratories today, you’d be paying a fair price for it. And if you believe that the stock is really worth $365.01, then there’s not much of an upside to gain from mispricing. What's more, Bio-Rad Laboratories’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Bio-Rad Laboratories?

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. With revenues expected to grow by a double-digit 12% over the next couple of years, the outlook is positive for Bio-Rad Laboratories. If the level of expenses is able to be maintained, 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? BIO’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 an eye on BIO, now may not be the most optimal 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 further examining 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 Bio-Rad Laboratories, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Bio-Rad Laboratories and we think they deserve your attention.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.