At US$14.30, Is Sprinklr, Inc. (NYSE:CXM) Worth Looking At Closely?

Sprinklr, Inc. (NYSE:CXM), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Sprinklr’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Sprinklr

Is Sprinklr Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.4% below my intrinsic value, which means if you buy Sprinklr today, you’d be paying a fair price for it. And if you believe that the stock is really worth $15.79, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Sprinklr has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Sprinklr 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 revenues expected to grow by 51% over the next couple of years, the future seems bright for Sprinklr. 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 CXM’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 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 CXM, now may not be the most optimal 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - Sprinklr has 2 warning signs we think you should be aware of.

If you are no longer interested in Sprinklr, 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.