TD Ameritrade Holding Corporation (NASDAQ:AMTD) received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $47.03 at one point, and dropping to the lows of $39.76. 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 AMTD's current trading price of $43.42 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 AMTD’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 AMTD

Is AMTD still cheap?

AMTD appears to be overvalued by 27% at the moment, based on my discounted cash flow valuation. Not the best news for investors looking to buy! The intrinsic value of the stock is $31.73, but it is currently valued by the market at $43.42. But, is there another opportunity to buy low in the future? Given that AMTD’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will AMTD 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.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 AMTD future expectations. AMTD’s earnings over the next few years are expected to increase by 62.67%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in AMTD’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 AMTD 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.

Are you a potential investor? If you’ve been keeping an eye on AMTD for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for AMTD, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on TD Ameritrade Holding. You can find everything you need to know about AMTD in the latest infographic research report. If you are no longer interested in TD Ameritrade Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.