Is Procore Technologies, Inc. (NYSE:PCOR) Potentially Undervalued?

Let's talk about the popular Procore Technologies, Inc. (NYSE:PCOR). The company's shares received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$88.33 at one point, and dropping to the lows of US$65.21. 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 Procore Technologies' current trading price of US$66.80 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 Procore Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is Procore Technologies Still Cheap?

The stock is currently trading at US$66.80 on the share market, which means it is overvalued by 23% compared to our intrinsic value of $54.36. This means that the buying opportunity has probably disappeared for now. Furthermore, Procore Technologies’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

View our latest analysis for Procore Technologies

What kind of growth will Procore Technologies generate?

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. With profit expected to grow by 78% over the next couple of years, the future seems bright for Procore Technologies. 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 well and truly priced in PCOR’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe PCOR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on PCOR for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for PCOR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Procore Technologies as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Procore Technologies has 2 warning signs and it would be unwise to ignore these.

If you are no longer interested in Procore Technologies, 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.