Amphastar Pharmaceuticals Inc (NASDAQ:AMPH), a pharmaceuticals company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. 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. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Amphastar Pharmaceuticals’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Amphastar Pharmaceuticals
What is Amphastar Pharmaceuticals worth?
Good news, investors! Amphastar Pharmaceuticals is still a bargain right now. According to my valuation, the intrinsic value for the stock is $28.93, but it is currently trading at $19.5 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Amphastar Pharmaceuticals’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Amphastar Pharmaceuticals generate?
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 revenues expected to grow by 97.64% over the next couple of years, the future seems bright for Amphastar Pharmaceuticals. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since Amphastar Pharmaceuticals is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on Amphastar Pharmaceuticals for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Amphastar Pharmaceuticals. 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.