Hill-Rom Holdings, Inc. ( NYSE:HRC ), which is in the medical equipment business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $98.85 and falling to the lows of $82.86. 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 Hill-Rom Holdings’s current trading price of $83.58 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hill-Rom Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Hill-Rom Holdings worth?
According to my valuation model, Hill-Rom Holdings seems to be fairly priced at around 3.8% below my intrinsic value, which means if you buy Hill-Rom Holdings today, you’d be paying a fair price for it. And if you believe the company’s true value is $86.88, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Hill-Rom Holdings’s low beta implies that the stock is less volatile than the wider market.
Can we expect growth from Hill-Rom Holdings?
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 profit expected to grow by 20% over the next couple of years, the future seems bright for Hill-Rom Holdings. 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? HRC’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on HRC, 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 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 Hill-Rom Holdings. You can find everything you need to know about Hill-Rom Holdings in the latest infographic research report . If you are no longer interested in Hill-Rom Holdings, 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 firstname.lastname@example.org .