Let’s talk about the popular Brookfield Infrastructure Partners LP. (NYSE:BIP). The company’s shares received a lot of attention from a substantial price movement on the NYSE in the over the last few months, increasing to $45.72 at one point, and dropping to the lows of $40.11. 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 Brookfield Infrastructure Partners’s current trading price of $41.18 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Brookfield Infrastructure Partners’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Brookfield Infrastructure Partners

What’s the opportunity in Brookfield Infrastructure Partners?

Brookfield Infrastructure Partners appears to be overvalued by 87% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$41.18 on the market compared to my intrinsic value of $22.02. Not the best news for investors looking to buy! Furthermore, Brookfield Infrastructure Partners’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What does the future of Brookfield Infrastructure Partners look like?

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 revenues expected to grow by a double-digit 17.58% over the next couple of years, the outlook is positive for Brookfield Infrastructure Partners. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? BIP’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe BIP should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.