Stock Analysis

What Is Intuit Inc.'s (NASDAQ:INTU) Share Price Doing?

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NasdaqGS:INTU
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Let's talk about the popular Intuit Inc. (NASDAQ:INTU). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap 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? Today I will analyse the most recent data on Intuit’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Intuit

Is Intuit Still Cheap?

According to my valuation model, Intuit seems to be fairly priced at around 7.4% below my intrinsic value, which means if you buy Intuit today, you’d be paying a fair price for it. And if you believe the company’s true value is $442.69, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Intuit’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Intuit look like?

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NasdaqGS:INTU Earnings and Revenue Growth January 24th 2023

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. 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. Intuit's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? INTU’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on INTU, 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 2 warning signs for Intuit and we think they deserve your attention.

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

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