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Oxford Instruments plc (LON:OXIG), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the LSE. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Oxford Instruments’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Oxford Instruments
What Is Oxford Instruments Worth?
According to our valuation model, Oxford Instruments seems to be fairly priced at around 9.5% below our intrinsic value, which means if you buy Oxford Instruments today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth £23.98, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Oxford Instruments’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will Oxford Instruments generate?
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. Oxford Instruments' earnings over the next few years are expected to increase by 38%, 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 already priced in OXIG’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on OXIG, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.