Is Now An Opportune Moment To Examine Extreme Networks, Inc. (NASDAQ:EXTR)?

While Extreme Networks, Inc. (NASDAQ:EXTR) might not have the largest market cap around , it saw a decent share price growth of 13% on the NASDAQGS over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Extreme Networks’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Extreme Networks

What Is Extreme Networks Worth?

Great news for investors – Extreme Networks is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $22.97, but it is currently trading at US$14.25 on the share market, meaning that there is still an opportunity to buy now. However, given that Extreme Networks’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Extreme Networks generate?

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. However, with a relatively muted revenue growth of 9.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Extreme Networks, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since EXTR is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on EXTR for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EXTR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Extreme Networks, 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.