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While Amkor Technology, Inc. (NASDAQ:AMKR) might not be the most widely known stock at the moment, it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$26.24 and falling to the lows of US$21.34. 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 Amkor Technology's current trading price of US$21.47 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 Amkor Technology’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 Amkor Technology
What is Amkor Technology worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.49% above my intrinsic value, which means if you buy Amkor Technology today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $20.75, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Amkor Technology’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Amkor Technology look like?
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 a double-digit 14% over the next couple of years, the outlook is positive for Amkor Technology. 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? AMKR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?