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While Bruker Corporation (NASDAQ:BRKR) might not have the largest market cap around , it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$70.67 and falling to the lows of US$57.90. 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 Bruker's current trading price of US$58.05 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 Bruker’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Bruker
What Is Bruker Worth?
Great news for investors – Bruker is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Bruker’s ratio of 24.96x is below its peer average of 36.95x, which indicates the stock is trading at a lower price compared to the Life Sciences industry. Although, there may be another chance to buy again in the future. This is because Bruker’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 kind of growth will Bruker generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 32% over the next couple of years, the future seems bright for Bruker. 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? Since BRKR is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.