Yahoo Finance When Should You Buy JFrog Ltd. (NASDAQ:FROG)?
JFrog Ltd. (NASDAQ:FROG), is not the largest company out there, but it saw a decent share price growth of 11% on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. 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. But what if there is still an opportunity to buy? Today we will analyse the most recent data on JFrog’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for JFrog
What's The Opportunity In JFrog?
According to our valuation model, JFrog seems to be fairly priced at around 16.77% above our intrinsic value, which means if you buy JFrog today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $29.37, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, JFrog has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from JFrog?
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 profit expected to grow by 26% over the next couple of years, the future seems bright for JFrog. 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 FROG’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 track record of its management team. 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 an eye on FROG, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you'd like to know more about JFrog as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 3 warning signs for JFrog and you'll want to know about these.
If you are no longer interested in JFrog, 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.
