NASDAQ:NTNX) might not be the most widely known stock at the moment, it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. 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, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Nutanix’s outlook and valuation to see if the opportunity still exists.” data-reactid=”28″>While Nutanix, Inc. (NASDAQ:NTNX) might not be the most widely known stock at the moment, it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. 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, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Nutanix’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Nutanix ” data-reactid=”29″>See our latest analysis for Nutanix
What is Nutanix worth?
According to my valuation model, Nutanix seems to be fairly priced at around 3.91% above my intrinsic value, which means if you buy Nutanix today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $22.86, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Nutanix’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 does the future of Nutanix look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Nutanix’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
4 warning signs for Nutanix you should know about.” data-reactid=”53″>With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we’ve spotted 4 warning signs for Nutanix you should know about.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Nutanix, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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