BILL Holdings, Inc. ($BILL), is not the largest company out there, but it saw a decent share price growth in the teens level on the NYSE over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook are already priced into the stock. However, what if the stock is still a bargain?
Let’s examine BILL Holdings’s valuation and outlook in more detail to determine if there’s still a bargaining opportunity.
What Is BILL Holdings Worth?
The stock seems fairly valued at the moment . It’s trading around 17% below my intrinsic value, which means if you buy BILL Holdings today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $92.81, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since BILL Holdings’s share price is quite volatile, it could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator of how much the stock moves relative to the rest of the market.
Can Shareholders expect growth from ($BILL) BILL Holdings?
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 54% over the next couple of years, the future seems bright for BILL Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Mean For Shareholders
Are you a shareholder? BILL’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, 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 fluctuate below the true value?
Are you a potential investor? If you’ve been keeping tabs on BILL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.
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