Should You Investigate BlackLine, Inc. (NASDAQ:BL) At US$60.83?

While BlackLine, Inc. (NASDAQ:BL) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$77.60 at one point, and dropping to the lows of US$60.51. 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 BlackLine's current trading price of US$60.83 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 BlackLine’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for BlackLine

Is BlackLine Still Cheap?

According to my valuation model, BlackLine seems to be fairly priced at around 11% below my intrinsic value, which means if you buy BlackLine today, you’d be paying a fair price for it. And if you believe the company’s true value is $68.47, then there’s not much of an upside to gain from mispricing. What's more, BlackLine’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will BlackLine generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 profit expected to grow by 65% over the next couple of years, the future seems bright for BlackLine. 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? BL’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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on BL, 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 diving deeper into 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 BlackLine as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that BlackLine has 2 warning signs and it would be unwise to ignore them.

If you are no longer interested in BlackLine, 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.