Coupa Software Incorporated (NASDAQ:COUP) may not be a large-cap stock, but it’s gotten a lot of attention from its massive price gains on NASDAQGS over the past few months. With many analysts covering mid-cap stocks, you can expect any price-sensitive announcement to be already priced into the stock. But what if the stock is still a bargain? To see if the opportunity still exists, he takes a look at Coupa Software’s outlook and value based on the latest financial data.
View the latest analysis from Coupa Software
Is Coupa software still cheap?
According to my valuation model, Coupa Software is priced about 5.5% below my intrinsic value. And if you believe the company’s true value is $83.20, there isn’t much room for the stock to rise above its current trading value. Will there be a chance to buy at a lower price in the future? Coupa Software’s stock price is highly volatile and could fall (or rise) in the future, making this another buying opportunity. This is based on a high beta, which is a good indicator of how well a stock moves relative to the rest of the market.
What does the future look like for Coupa Software?
Future prospects are an important aspect when looking to buy stocks, especially for investors looking for portfolio growth. Value investors will argue that intrinsic value for price is what matters most, but a more compelling investment theme is the potential for high growth at low prices. Coupa Software’s revenue is expected to grow by 34% over the next few years, indicating a very optimistic future ahead. This should generate stronger cash flow, which should lead to higher stock prices.
what this means for you
are you a shareholder? The market appears to have already priced in a positive outlook for COUP, with shares trading near fair value. However, there are other important factors that we don’t consider today, such as the track record of management. Have any of these factors changed since the last time you looked at the stock price? If the price falls below fair value, are you confident enough to invest in the company?
Are you a potential investor? If you’re watching the COUP, it may not be the best time to buy because it’s trading at a fair price. The optimistic outlook is encouraging for the company, however, and means it’s worth further considering other factors, such as the strength of its balance sheet, to take advantage of the next price drop.
If you want to dig deeper into Coupa Software, you should also look at the risks it currently faces. To do that, you need to learn: two warning signs I found Coupa Software (including one that could be serious).
If you’re no longer interested in Coupa Software, use our free platform to browse our list of over 50 other stocks with strong growth potential.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …