Baker Hughes a GE company (NYSE:BHGE) received a lot of attention from a substantial price movement on the NYSE in the over the last few months, increasing to $37.52 at one point, and dropping to the lows of $29.94. 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 BHGE’s current trading price of $31.85 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 BHGE’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 Baker Hughes a GE

Is BHGE still cheap?

BHGE appears to be overvalued by 57% at the moment, based on my discounted cash flow valuation. The stock is currently priced at $31.85 on the market compared to my intrinsic value of $20.3. Not the best news for investors looking to buy! In addition to this, it seems like BHGE’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because BHGE’s stock is less volatile than the wider market given its low beta.

Can we expect growth from BHGE?

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 BHGE future expectations. BHGE’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger 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 BHGE’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 BHGE 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 tabs on BHGE for some time, 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 optimistic prospect is encouraging for BHGE, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.