What does the Matthews International Corporation (NASDAQ: MATW) share price indicate?


Matthews International Corporation (NASDAQ: MATW) is not the largest company in the market, but it has seen significant share price movement in recent months on the NASDAQGS, reaching highs of US $ 39.42 and falling. to lows of US $ 32.13. Certain movements in stock prices can give investors a better opportunity to get into the stock and potentially buy at a lower price. One question to answer is whether Matthews International’s current price of US $ 34.90 reflects the true value of small cap? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at the outlook and value of Matthews International based on the most recent financial data to see if there are any catalysts for a price change.

Is Matthews International still cheap?

Good news for investors – Matthews International is still trading fairly low. My valuation model shows that the intrinsic value of the stock is $ 54.88, but it is currently trading at US $ 34.90 in the stock market, which means there is still a opportunity to buy now. However, given that Matthews International’s stock is quite volatile (i.e. its price movements are amplified relative to the rest of the market), it could mean that the price may go down, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator of stock price volatility.

What does the future of Matthews International look like?

NasdaqGS: MATW Earnings and Revenue Growth December 19, 2021

Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking for growth in your portfolio. While value investors argue that intrinsic value versus price matters most, a more compelling investment thesis would be high growth potential at a cheap price. With profits expected to more than double over the next two years, the future looks bright for Matthews International. It appears that a higher cash flow is expected for the stock, which should translate into a higher valuation of the stock.

What this means for you:

Are you a shareholder? With MATW currently undervalued, maybe now is the time to increase your holdings of stocks. With a positive outlook on the horizon, it appears that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping your eye on MATW for a while, now might be the time to get into the stock. Its prosperous future prospects are not yet fully reflected in the current share price, which means it is not too late to buy MATW. But before making any investment decisions, consider other factors such as the strength of your balance sheet, in order to make an informed purchase.

Keep in mind that when it comes to analyzing a stock, it is worth noting the risks involved. For example, Matthews International has 3 warning signs (and 1 which is a bit disturbing) we think you should know.

If you are no longer interested in Matthews International, you can use our free platform to view our list of over 50 other stocks with strong growth potential.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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