Yahoo Finance What Is NanoXplore, Inc.'s (CVE:GRA) Share Price Doing?
NanoXplore, Inc. (CVE:GRA), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the TSXV. With many analysts covering the 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 take a look at NanoXplore’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for NanoXplore
What is NanoXplore worth?
NanoXplore appears to be overvalued by 22% at the moment, based on my discounted cash flow valuation. The stock is currently priced at CA$2.85 on the market compared to my intrinsic value of CA$2.34. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since NanoXplore’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 NanoXplore look like?
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 revenues expected to grow by 94% over the next couple of years, the future seems bright for NanoXplore. 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? GRA’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe GRA 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 GRA 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 positive outlook is encouraging for GRA, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
If you want to dive deeper into NanoXplore, you'd also look into what risks it is currently facing. To that end, you should learn about the 3 warning signs we've spotted with NanoXplore (including 1 which shouldn't be ignored).
If you are no longer interested in NanoXplore, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. 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.
