IQVIA Holdings Inc (NYSE:IQV) saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $105.95 and falling to the lows of $94.85. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether IQVIA Holdings’s current trading price of $98.7 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 IQVIA Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for IQVIA Holdings
What is IQVIA Holdings worth?According to my valuation model, IQVIA Holdings seems to be fairly priced at around 6.8% above my intrinsic value, which means if you buy IQVIA Holdings today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $92.42, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, it seems like IQVIA Holdings’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
What does the future of IQVIA Holdings 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. Though in the case of IQVIA Holdings, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? IQV seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on IQV for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on IQV should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on IQVIA Holdings. You can find everything you need to know about IQVIA Holdings in the latest infographic research report. If you are no longer interested in IQVIA Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.