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While FitLife Brands, Inc. (NASDAQ:FTLF) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$17.44 at one point, and dropping to the lows of US$14.83. 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 FitLife Brands' current trading price of US$14.83 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 FitLife Brands’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 FitLife Brands
What Is FitLife Brands Worth?
Good news, investors! FitLife Brands is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that FitLife Brands’s ratio of 16.27x is below its peer average of 24.57x, which indicates the stock is trading at a lower price compared to the Personal Products industry. What’s more interesting is that, FitLife Brands’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move closer to its industry peers, 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 kind of growth will FitLife Brands 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. 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 32% over the next couple of years, the future seems bright for FitLife Brands. 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? Since FTLF is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 price multiple.