eHealth Inc (NASDAQ:EHTH), a insurance company based in United States, received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $27.9 at one point, and dropping to the lows of $16.49. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether eHealth’s current trading price of $17.56 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 eHealth’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for eHealth

What is eHealth worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 19% below my intrinsic value, which means if you buy eHealth today, you’d be paying a fair price for it. And if you believe that the stock is really worth $21.6, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since eHealth’s share price is quite volatile, we 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 for how much the stock moves relative to the rest of the market.

Can we expect growth from eHealth?

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. Though in the case of eHealth, it is expected to deliver a relatively unexciting earnings growth of 4.77%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for eHealth, at least in the near term.

What this means for you:

Are you a shareholder? eHealth’s 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 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 fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on eHealth, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.