SEEK Limited (ASX:SEK), a commercial and professional services company based in Australia, saw its share price hover around a small range of $16.38 to $17.83 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at SEK’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 SEK

What is SEK worth?

SEK appears to be overvalued by 29% 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 $11.85, but it is currently valued by the market at $16.58. But, is there another opportunity to buy low in the future? Given that SEK’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 does the future of SEK 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 SEK future expectations. However, with a negative profit growth of -17.33% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for SEK. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? If you believe SEK 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. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. 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 SEK for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy?

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

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.