While LiveOne, Inc. (NASDAQ:LVO) might not have the largest market cap around , it saw a significant share price rise of 112% in the past couple of months on the NASDAQCM. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine LiveOne’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for LiveOne

What's The Opportunity In LiveOne?

LiveOne appears to be overvalued by 21% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$1.19 on the market compared to our intrinsic value of $0.98. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that LiveOne’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 does the future of LiveOne look like?

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 a negative profit growth of -4.8% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for LiveOne. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? If you believe LVO should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on LVO for some time, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

If you want to dive deeper into LiveOne, you'd also look into what risks it is currently facing. To help with this, we've discovered 4 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in LiveOne.

If you are no longer interested in LiveOne, 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.