What Is LiveRamp Holdings, Inc.'s (NYSE:RAMP) Share Price Doing?

LiveRamp Holdings, Inc. (NYSE:RAMP), might not be a large cap stock, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine LiveRamp Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for LiveRamp Holdings

What's The Opportunity In LiveRamp Holdings?

According to my valuation model, LiveRamp Holdings seems to be fairly priced at around 13% below my intrinsic value, which means if you buy LiveRamp Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $34.76, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since LiveRamp Holdings’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of LiveRamp Holdings look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With revenues expected to grow by 37% over the next couple of years, the future seems bright for LiveRamp Holdings. 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 RAMP’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 RAMP, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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 want to dive deeper into LiveRamp Holdings, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for LiveRamp Holdings you should know about.

If you are no longer interested in LiveRamp Holdings, 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.