Yahoo Finance Should You Think About Buying Euronet Worldwide, Inc. (NASDAQ:EEFT) Now?
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Euronet Worldwide, Inc. (NASDAQ:EEFT), which is in the it business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Euronet Worldwide’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Euronet Worldwide
What’s the opportunity in Euronet Worldwide?
According to my valuation model, Euronet Worldwide seems to be fairly priced at around 9.9% above my intrinsic value, which means if you buy Euronet Worldwide today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $106.02, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Euronet Worldwide’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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Euronet Worldwide 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. 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 profit expected to more than double over the next couple of years, the future seems bright for Euronet Worldwide. 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? EEFT’s optimistic future growth appears to have been factored into the current share price, 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 an eye on EEFT, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Euronet Worldwide. You can find everything you need to know about Euronet Worldwide in the latest infographic research report. If you are no longer interested in Euronet Worldwide, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
