At US$7.16, Is It Time To Put Viavi Solutions Inc. (NASDAQ:VIAV) On Your Watch List?

Viavi Solutions Inc. (NASDAQ:VIAV), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$9.87 at one point, and dropping to the lows of US$7.26. 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 Viavi Solutions' current trading price of US$7.16 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Viavi Solutions’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 Viavi Solutions

What Is Viavi Solutions Worth?

Good news, investors! Viavi Solutions is still a bargain right now. According to our valuation, the intrinsic value for the stock is $11.22, but it is currently trading at US$7.16 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Viavi Solutions’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What does the future of Viavi Solutions 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. However, with a relatively muted revenue growth of 10.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Viavi Solutions, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since VIAV 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 VIAV 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 VIAV. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Diving deeper into the forecasts for Viavi Solutions mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Viavi Solutions, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com