LiveRamp Holdings, Inc. (NYSE:RAMP), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NYSE. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at LiveRamp Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is LiveRamp Holdings still cheap?
According to my valuation model, LiveRamp Holdings seems to be fairly priced at around 8.2% below my intrinsic value, which means if you buy LiveRamp Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth $57.14, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since LiveRamp Holdings’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.
Can we expect growth from LiveRamp Holdings?
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 the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for LiveRamp Holdings, at least in the near future.
What this means for you:
Are you a shareholder? RAMP seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on RAMP for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on RAMP should the price fluctuate below its true value.
If you want to dive deeper into LiveRamp Holdings, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 3 warning signs for LiveRamp Holdings and you'll want to know about these.
If you are no longer interested in LiveRamp Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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