Why Manhattan Associates, Inc. (NASDAQ:MANH) Could Be Worth Watching

Manhattan Associates, Inc. (NASDAQ:MANH) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$208 and falling to the lows of US$185. 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 Manhattan Associates' current trading price of US$194 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 Manhattan Associates’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 Manhattan Associates

What Is Manhattan Associates Worth?

According to my valuation model, Manhattan Associates seems to be fairly priced at around 4.81% above my intrinsic value, which means if you buy Manhattan Associates today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $185.52, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Manhattan Associates’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 Manhattan Associates look like?

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 59% over the next couple of years, the future seems bright for Manhattan Associates. 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 MANH’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 MANH, 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 Manhattan Associates as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for Manhattan Associates and you'll want to know about this.

If you are no longer interested in Manhattan Associates, 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.