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Today we're going to take a look at the well-established C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$112 at one point, and dropping to the lows of US$99.18. 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 C.H. Robinson Worldwide's current trading price of US$108 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 C.H. Robinson Worldwide’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 C.H. Robinson Worldwide
What Is C.H. Robinson Worldwide Worth?
C.H. Robinson Worldwide appears to be overvalued by 22% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$108 on the market compared to our intrinsic value of $88.15. Not the best news for investors looking to buy! Furthermore, C.H. Robinson Worldwide’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 kind of growth will C.H. Robinson Worldwide generate?
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. 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. With profit expected to grow by 84% over the next couple of years, the future seems bright for C.H. Robinson Worldwide. 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? It seems like the market has well and truly priced in CHRW’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe CHRW 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.