Is Bio-Rad Laboratories, Inc. (NYSE:BIO) Potentially Undervalued?

Bio-Rad Laboratories, Inc. (NYSE:BIO), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$374 at one point, and dropping to the lows of US$310. 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$333 reflective of the actual value of the mid-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?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 3.20% above our intrinsic value, which means if you buy Bio-Rad Laboratories today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $322.59, there’s only an insignificant downside when the price falls to its real value. 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.

What does the future of Bio-Rad Laboratories 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. 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 11% 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? It seems like the market has already priced in BIO’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 tabs on BIO, now may not be the most advantageous 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.

Diving deeper into the forecasts for Bio-Rad Laboratories mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

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.

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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.