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Should You Investigate DENTSPLY SIRONA Inc. (NASDAQ:XRAY) At US$31.48?

Simply Wall St ·  11/28/2023 19:10

DENTSPLY SIRONA Inc. (NASDAQ:XRAY), 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 NASDAQGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's examine DENTSPLY SIRONA's valuation and outlook in more detail to determine if there's still a bargain opportunity.

See our latest analysis for DENTSPLY SIRONA

What's The Opportunity In DENTSPLY SIRONA?

Great news for investors – DENTSPLY SIRONA is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $52.16, but it is currently trading at US$31.48 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that DENTSPLY SIRONA's share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range again.

What does the future of DENTSPLY SIRONA look like?

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NasdaqGS:XRAY Earnings and Revenue Growth November 28th 2023

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. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of DENTSPLY SIRONA, it is expected to deliver a relatively unexciting top-line growth of 9.6% in the next few years, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since XRAY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you've been keeping an eye on XRAY for a while, now might be the time to enter the stock. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy XRAY. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - DENTSPLY SIRONA has 1 warning sign we think you should be aware of.

If you are no longer interested in DENTSPLY SIRONA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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