While Asana, Inc. (NYSE:ASAN) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$20.41 and falling to the lows of US$15.59. 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 Asana's current trading price of US$15.59 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 Asana's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What's The Opportunity In Asana?
Great news for investors – Asana is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $24.01, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Asana's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Asana generate?
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. However, with a relatively muted profit growth of 1.7% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Asana, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since ASAN 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 ASAN for a while, now might be the time to make a leap. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ASAN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
If you'd like to know more about Asana as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for Asana and we think they deserve your attention.
If you are no longer interested in Asana, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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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.